In its first official response to the Hindenburg allegations against SEBI Chairperson Madhabi Puri Buch, the Ministry of Finance indicated that the government has no further comments on the matter. Economic Affairs Secretary Ajay Seth stated that both SEBI and Buch have already addressed the issue. Speaking to reporters outside North Block, Seth said, “SEBI has made a statement, and the concerned person has also responded. There’s nothing more for the government to add.”
Economic Affairs Secretary Ajay Seth said there is “nothing further to add” by the government on the issue as both the regulator and the concerned person have given the statements.
“SEBI has given a statement. The concerned person has given a statement. I have nothing further to add,” Seth told reporters outside North Block.
According to the reports of the Indian Express, When asked about whether the SEBI Chairperson will step aside from the case, Seth reiterated, “Both of them, the concerned person as well as the regulator, have made the statements and there is nothing further to be added by the government.”
What Allegations Hindenburg Made?
The US-based short-seller Hindenburg Research released a report making serious allegations against Madhabi Puri Buch, the chairperson of the Securities and Exchange Board of India (SEBI) on August 10. The report claims that Buch and her husband, Dhaval Buch, were involved in offshore funds related to the Adani Group, suggesting potential conflicts of interest and misconduct in the context of the ongoing scrutiny of the Adani Group’s financial practices.
Hindenburg alleges that Madhabi Puri Buch had undisclosed financial ties to the Adani Group, which raises questions about her impartiality and the integrity of SEBI’s regulatory oversight. The report claims these offshore funds were part of a broader “money siphoning scandal” involving the Adani Group.
However, in a joint statement with her husband, Buch denied the allegations, asserting that their investments were made prior to her appointment at SEBI and that they were private citizens living abroad at the time. They characterized the claims as a “character assassination” attempt.
SEBI Reaction
SEBI defended its Chairperson Madhabi Puri Buch on Sunday, stating that the regulator has adequate internal mechanisms to address issues related to conflict of interest.. These safeguards include a disclosure framework and provisions for recusal when necessary.
“Chairperson has also recused herself in matters involving potential conflicts of interest,” the regulator said.
