Adani probe nearly over; Buch disclosed, recused when necessary: SEBI
SEBI reminds investors that disclaimer states Hindenburg Research may have short positions in securities covered in the report
The Securities and Exchange Board of India (SEBI) has issued a statement in reaction to the fresh Hindenburg Research allegations linking SEBI chairperson Madhabi Puri Buch and her husband Dhaval Buch with the Adani Group.
The US-based short seller has claimed that it suspects SEBI’s unwillingness to act against Adani Group stems from Buch’s stakes in offshore funds linked to the conglomerate. To that, the capital markets regulator on Sunday (August 11) said it has investigated all the allegations against the Adani Group.
Probe near completion: SEBI
The SEBI said in the statement that while the Supreme Court on January 3 noted that the regulator had completed 22 out of 24 investigations into the Adani Group, it subsequently completed one more investigation in March, and the last one is close to completion.
Chairperson Madhabi Buch made relevant disclosures from time to time and recused herself in matters involving potential conflicts of interest, the regulator added in the statement.
The Hindenburg report has also questioned SEBI’s issuance of a show-cause notice to it on June 27. The market regulator argued that the show-cause notice, alleging violations of securities laws by the short seller, “has been issued by following the due process of the law”. SEBI pointed out that the notice is available on the Hindenburg website and contains the reasons for its issuance.
Message for investors
The SEBI also had a message for investors who may react to the report. “Investors should remain calm and exercise due diligence before reacting to such reports. Investors may also like to take note of the disclaimer in the report that states that readers should assume that Hindenburg Research may have short positions in the securities covered in the report,” the statement said.
Madhabi and Dhaval have termed the allegations baseless and have issued several clarifications from their end. They have termed it an attempt at character assassination of the SEBI chief and attacking the credibility of the Indian market regulator.