The recent Hindenburg Report released last week by the US Short Seller, has accused SEBI chairperson Madhabi Buch and her husband Dhaval Buch of having stakes in obscure offshore funds used in the Adani “money siphoning scandal”.
Hindenburg Report: Stepping up its attack on the government over the recent report by US-based short seller Hindenburg Research, the Congress on Saturday demanded the resignation of SEBI chairperson Madhabi Buch, and reiterated its call for a Joint Parliamentary Committee (JPC) investigation into the Adani “mega scam”.
Citing a news report which flagged alleged conflicts of interest by Buch, Congress termed her continuation as the head of the capital markets regulator as “untenable”.
Taking to X, Congress MP Jairam Ramesh said the news report by The Morning Context raises many questions against Madhabi Buch, such as if she has recused herself from all matters involving companies that private equity firm Blackstone has a stake in and how many Blackstone companies find a place on that recusal list.
“Yet another day and yet more revelations on the multiple conflicts of interest in the SEBI chairperson’s activities,” the Congress general secretary said.
SEBI chief ‘conflicts of interest’
Ramesh asserted the SEBI chief’s conflicts of interest have “made a mockery” of the regulator’s Supreme Court-mandated probe against the Adani Group.
“The SEBI chairperson’s conflicts of interest have already made a mockery of the Supreme Court-mandated SEBI investigations into the violations of securities laws by the Adani Group,” he said.
He said the media report has brought to light other conflicts of interest relating to the SEBI chairperson.
“These involve the private equity firm Blackstone where her husband is employed as a senior advisor. There appears to be at least one case involving Blackstone and SEBI from which she had not exempted herself from (or in legal language, recused herself),” Ramesh said.
Buch’s continuation ‘untenable’
Terming her continuation as the head of SEBI as “untenable”, Ramesh said Buch must resign a JPC probe must be conducted into the “Adani mega scam”.
“The Chairperson’s continuance in her role is untenable. She must resign, and a full Joint Parliamentary Committee (JPC) investigation must be conducted into the Adani mega scam,” the Congress veteran said.
Responding to a post on X, Ramesh also said, “Only a JPC can unravel the full dimensions of this Modani Megascam.”
The Congress leader’s remarks days after Hindenburg Research released another damning report, this time targeting market regulator SEBI chairperson Madhabi Buch, alleging that she and her husband Dhaval Buch had stakes in obscure offshore funds used in the Adani “money siphoning scandal”.
Buchs deny ‘baseless’ allegations
The Buchs have denied the allegations as “baseless”, asserting that their finances are an open book.
In a statement issued Sunday, Madhabi Buch and her husband accused Hindenburg Research of attempting to tarnish the credibility of SEBI and engaging in the character assassination of its chairperson.
“Hindenburg has been served a show cause notice for a variety of violations in India. It is unfortunate that instead of replying to the Show Cause Notice, they have chosen to attack the credibility of the SEBI and attempt character assassination of the SEBI Chairperson,” the statement said.
Billionaire Gautam Adani-led Adani Group, which bore heavy market losses early last year, after a report by Hindenburg Research accused the conglomerate of stock market manipulation, has also termed the short seller’s latest allegations as “malicious and manipulative of select public information”.
The Adani Group has asserted it has no commercial relationship with the SEBI chairperson or her husband.
(With PTI inputs)