look news india
New Delhi: A day after US short-selling research firm Hindenburg accused Sebi chief Madhavi Buch of colluding with the Adani Group in corruption, the Opposition on Sunday pressed for the formation of a Joint Parliamentary Committee (JPC) to probe the massive scam. The Supreme Court should take this entire scam seriously and investigate it. On the other hand, Sebi Chairman Madhavi Buch and the Adani Group have denied Hindenburg's allegations. Madhavi Buch called the allegations an attempt to tarnish her character and the credibility of Sebi. Congress President Mallikarjun Kharge on Sunday alleged that until the JPC investigates the matter, there will be concerns that 'Prime Minister Narendra Modi will continue to protect his ally by compromising with the constitutional institutions of India, which have been built over the last seven decades.'
The Congress said the government should take immediate action to eliminate all conflicts of interest in the investigation into Adani Group directors.
Kharge wrote on X, 'After the Hindenburg report of January 2023, the Supreme Court gave a clean chit to Adani, an associate of Prime Minister Narendra Modi. However, a new allegation has surfaced regarding the transaction involving the SEBI chairman. He said that small and medium investors of the middle class need protection as they are investing their hard-earned money in the stock market and they trust SEBI.
The opposition said that the Supreme Court should take suo motu cognizance of the entire scam and order an investigation under its supervision, because the investigating agency SEBI itself is facing allegations. They said that after such serious allegations, Madhavi Buch cannot continue in her post.
Referring to Hindenburg's allegations against Sebi chief Madhavi Buch, Leader of Opposition in Lok Sabha Rahul Gandhi on Sunday said the reputation of Sebi, which is tasked with protecting the wealth of small retail investors, has been seriously damaged by the allegations levelled against its chairperson. Honest investors across the country have important questions for the government.
Rahul Gandhi asked why SEBI Chairman Madhavi Puri has not yet resigned? Who will be responsible if investors lose their hard-earned money? Prime Minister Narendra Modi, SEBI Chairman or Gautam Adani? When the new allegations are more serious, will the Supreme Court take suo motu cognizance and re-investigate the matter? Rahul Gandhi further said that now it is completely clear why Prime Minister Modi is so afraid of the JPC investigation and what can be learned from it?
Meanwhile, following Hindenburg's allegations on Saturday night, market regulator Sebi chief Madhavi Puri Buch and her husband Dhaval Buch on Sunday said that US research and short-selling company Hindenburg Research is trying to attack the credibility of Sebi and malign the character of the chairperson. Her investment in a fund of IIFL Wealth Management was made as a Singapore-based private citizen. This investment was made two years before Madhavi joined Sebi as a full-time member. Also, the couple said that Dhaval, a senior advisor to Blackstone since 2019, is not associated with the real estate side of the private equity firm.
He said Hindenburg has been served a show cause notice for various regulatory violations in India. Instead of responding to this, the company has chosen to attack the credibility of SEBI and tarnish the character of the chairperson.
On the other hand, the Adani Group has also described the new Hindenburg report as malicious and an attempt to divert attention. The Adani Group said that the report has been prepared by taking selective pieces of already public information to reach pre-determined conclusions. This work is done for personal gain. The Adani Group completely rejects these allegations. Apart from this, these allegations have also been rejected by the Supreme Court in March 2023.
Market regulator SEBI also reacted to the allegations of Hindenburg Research. SEBI said that Chairperson Madhavi Buch has made relevant disclosures from time to time. The chairperson has distanced herself from matters related to possible conflict of interest. SEBI has thoroughly investigated all the allegations against the Adani Group. Action has also been initiated in the cases in which the investigation has been completed. Apart from this, SEBI has advised investors to remain calm and act prudently.
Adani-Madhavi Puri, some doubts still linger even after SEBI's reply!
The Adani Group has denied allegations by US short-seller firm Hindenburg of colluding with SEBI chairperson Madhabi Puri Buch. However, even after this hollow defence, some questions remain. Let us understand this in detail.
No business dealings with Madhavi Puri Buch: Adani
The money to drive down Adani's share price reportedly came from an offshore fund run by Vinod Adani.
SEBI Chairperson Madhabi Puri Buch and her husband Dhawal Buch have invested in this fund, so how can it be said that there has been no commercial financial transaction between you.
There is no point after Supreme Court's decision: Adani
Hindenburg did not comment on the Supreme Court's decision. But the person who investigated you and gave you a clean chit is the SEBI chairman who is an investor in your offshore company. About which 140 crore people of India are not aware. Neither Adani nor SEBI has made any disclosure in this regard.
We cannot reach out to investors of offshore funds: Sebi
Can you go and invest in an offshore fund but not get your investment? The reason is that you yourself are an investor in it.
We have submitted a disclosure report to SEBI from time to time
You say we release reports on various platforms from time to time. But who will do these disclosure checks? You yourself are the president. What have you disclosed in the income tax return? And yes, a copy should be prepared
