Congress demands probe into Hindenburg's allegations against SEBI chief
The Congress party has called for a Joint Parliamentary Committee (JPC) investigation into the recent Hindenburg Research allegations against Madhabi Puri Buch, the chairperson of the Securities and Exchange Board of India (SEBI). The US-based research firm has accused Buch and her husband, Dhaval Buch, of holding stakes in offshore funds linked to the Adani money siphoning scandal.
'SEBI cleared Adani, a close associate of PM Modi': Kharge
In a post on X, Congress chief Mallikarjun Kharge wrote, "SEBI had previously cleared Adani, a close associate of PM Modi, before the Supreme Court following the January 2023 Hindenburg Report revelations." "However, new allegations have surfaced regarding a quid-pro-quo involving the SEBI Chief," Kharge added. He said a JPC probe is needed to protect small and medium investors who invest their hard-earned money in the stock market.
BJP calls allegations a conspiracy
PM Modi's party, the Bharatiya Janata Party (BJP), has dismissed the allegations as a conspiracy to destabilize India's financial system. BJP leader Rajeev Chandrasekhar alleged that the report was published in partnership with Congress and aimed at discrediting SEBI. "This attack on SEBI by a foreign bank Hindenburg, is an obvious partnership with the Cong and has an ominous motive and goal," he said.
Adani Group dismisses Hindenburg's latest allegations
Adani Group has also refuted the allegations, labeling them as "malicious, mischievous, and manipulative." The Indian conglomerate claims that Hindenburg has selectively used public information to draw predetermined conclusions for personal profit. Hindenburg's report implicated that SEBI chairperson and her husband had concealed stakes in Bermuda and Mauritius-based funds. They were allegedly used by Adani's brother Vinod "to amass and trade large positions in shares of Adani Group."
SEBI had issued show-cause notice to Hindenburg last month
Last year, SEBI had informed a Supreme Court-appointed panel that it was investigating 13 offshore entities holding significant stakes in Adani's publicly traded stocks after Hindenburg Research accused the group of share price manipulation and accounting fraud. However, last month, SEBI issued a show-cause notice to Hindenburg, accusing the firm of making "unfair" profits through "collusion" and using "non-public" and "misleading" information to induce "panic selling" in Adani Group stocks.
