SEBI Board Member's Revelation Raises Cloud Over Adani-Regulator Chief Link: Report
Since Hindenburg Research revealed crucial information about Securities and Exchange Board of India (SEBI) Chairperson Madhabi Puri Buch with serious allegations on August 11, the Modi government has been criticised for maintaining silence over critical questions raised. One of the key allegations is the SEBI Chairperson’s tie to offshore funds linked to Vinod Adani and the financial opacity in her consulting business.
The revelations continue to taint the regulator, which is headed by the Union Finance Ministry, leaving one of Asia’s largest markets in doubt. Responding to the allegations, the ministry had said it had nothing to add to what Buch had said in her defence without doing anything concrete in the matter.
Read Also: SEBI Chief Buch Earns Revenue In Potential Rules Violation: Report
Puri Bach and Adani Group had denied the US-based research report allegations, with SEBI chief stressing that complying with regulations should not be a burden for companies. Addressing the report, the SEBI chief said she received 6,000 comments on its consultation paper that proposed wide-ranging changes to the rules for trading index-based derivative contracts. ‘Without the use of technology, it would have been a massive task to scan through all the comments within a short time,’ she claimed.
However, an anonymous revelation by SEBI board member to news portal Scroll that Buch did not recuse herself from the market regulator’s investigation into alleged stock manipulation by the Adani Group, but in fact, “oversaw SEBI’s Adani probe because it was ordered by the Supreme Court” has contradicted SEBI’s official statement that Buch had “recused herself in matters involving potential conflicts of interest.”
Read Also: Congress Ramps Up Attack On Centre, Adani Group Alleging “Hindenburg Only The Tip Of The Iceberg”
It is now alleged that Buch, as a member of the SEBI board, has now clarified that she had not recused herself from the investigation when the Supreme Court directed the Board to probe Hindenburg’s original allegations, then it is understood that the SEBI chief was hiding this from the public and markets alike. The disclosure has led to the alleged link of SEBI chief with Adani Group while strengthening demanding for fair investigation under supervised by the Supreme Court.
A report by the Wire raised speculation over the board member distancing it from Buch comes under doubt, reminding the SEBI chief’s statement implicitly claiming that the SEBI board was backing her.
