• Opposition demands JPC probe into Hindenburg allegations against SEBI chief

    National
    Opposition demands JPC probe into Hindenburg allegations against SEBI chief
    Congress President Mallikarjun Kharge pointed out that SEBI had previously cleared Adani in response to the January 2023 Hindenburg Report, but new allegations suggest a "quid-pro-quo" involving the SEBI chief.


    Digital Desk: Congress on Sunday criticized the Modi government in response to allegations from Hindenburg Research against SEBI Chairperson Madhabi Buch. Rahul Gandhi claimed that the integrity of the market regulator has been "seriously compromised" and called for a Joint Parliamentary Committee (JPC) investigation into the matter. He also accused Prime Minister Narendra Modi of fearing a JPC probe, suggesting it would reveal more about the situation.

    The Congress urged the Supreme Court to take suo motu cognizance of the "entire scam" and conduct an investigation since the investigating agency, SEBI, is itself implicated. The party argued that, given the severity of the allegations, Buch should not remain in her position.

    Congress President Mallikarjun Kharge pointed out that SEBI had previously cleared Adani in response to the January 2023 Hindenburg Report, but new allegations suggest a "quid-pro-quo" involving the SEBI chief.

    Kharge emphasized the need to protect small and medium investors who trust SEBI, advocating for a JPC inquiry into the scandal. He expressed concern that Modi might continue to protect his ally, thereby undermining India's constitutional institutions.

    Congress spokesperson Supriya Shrinate questioned the government about the allegations surrounding SEBI and the integrity of the market regulator.

    Gandhi, in a post on X, expressed concerns about the compromised integrity of SEBI and called for accountability regarding who will be responsible if investors lose their money—whether it's PM Modi, the SEBI Chairperson, or Gautam Adani.

    Gandhi also queried whether the Supreme Court would revisit the matter in light of the new and serious allegations. He suggested that Modi's apparent fear of a JPC probe indicated what might be uncovered.

    Hindenburg Research accused SEBI Chairperson Madhabi Buch and her husband of having stakes in obscure offshore funds linked to the alleged Adani money siphoning scandal. Buch and her husband have denied these allegations, describing them as baseless, while the Adani Group dismissed the claims as malicious and based on selective information.

    Congress General Secretary Jairam Ramesh criticized SEBI's reluctance to investigate the Adani scandal, citing a previous Expert Committee's findings about SEBI's diluted reporting requirements. He questioned the timing of Gautam Adani's meetings with Buch shortly after she became SEBI Chairperson and called for the immediate elimination of any conflicts of interest in SEBI’s investigation of Adani.

    Shrinate also posed questions regarding Buch's past shareholdings and potential conflicts of interest, asking whether she disclosed her financial interests while serving as a SEBI director and whether she recused herself from investigations related to her or her husband’s financial interests. She questioned if Buch should remain in her role amid these allegations and whether such collusion could occur without Modi's protection.

    All India Professionals' Congress Chairperson Praveen Chakravarty highlighted the need for ethical, legal, and transparent practices for individuals in public roles.