New Delhi, August 12, 2024 — The Ministry of Finance has broken its silence on the allegations made by Hindenburg Research regarding Securities and Exchange Board of India (SEBI) Chairperson Madhabi Puri Buch. In its first official statement, Economic Affairs Secretary Ajay Seth confirmed that SEBI has already responded to the accusations, adding that he has "nothing to add" on the matter.
“The concerned person has given a statement,” Seth said, referencing the statement issued by SEBI in response to the Hindenburg report. This brief comment marks the Finance Ministry's first public acknowledgement of the controversy that has gripped India’s financial and regulatory circles.
The allegations stem from a recent report by U.S.-based Hindenburg Research, which accused Buch and her husband, Dhaval Buch, of having stakes in offshore companies allegedly involved in a money siphoning scheme linked to the Adani Group. The report has raised significant concerns about potential conflicts of interest and the integrity of India’s financial regulatory framework.
Hindenburg's report, which has already led to a major legal and financial storm for the Adani Group, has now cast a shadow over SEBI's leadership. The report suggests that the offshore companies in question were used as vehicles to divert funds out of India, thereby circumventing regulatory scrutiny—a charge that directly implicates Buch’s position as the chief of SEBI.
In response, SEBI issued a statement refuting the allegations. The regulatory body emphasized its commitment to transparency and integrity, stating that any claims of misconduct were baseless and an attempt to undermine confidence in India's financial system. SEBI also clarified that its leadership, including Buch, had no involvement in the activities described in the Hindenburg report.
However, the Finance Ministry’s limited response has left many questions unanswered. Critics argue that the government’s silence could be interpreted as a lack of accountability, while others believe that the ongoing investigations and the complexity of the matter warrant a cautious approach.
The Hindenburg report has sparked a broader debate about corporate governance and regulatory oversight in India. With both SEBI and the Adani Group under scrutiny, the situation continues to evolve, with market analysts and investors closely watching for any further developments.
For now, the Finance Ministry’s position remains clear: SEBI has responded, and there is nothing more to add. Whether this will satisfy the public and market stakeholders remains to be seen.
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