A day after the Securities and Exchange Board of India (Sebi) and its chairperson Madhabi Puri Buch defended themselves in separate statements amid allegations levelled against them by US short-seller Hindenburg, a senior government official said it had “nothing to add on the matter.”
“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,” economic affairs secretary Ajay Seth said.
Seth made the statement when asked whether Sebi chief would need to step aside from the regulatory investigation into Adani group in the wake of Hindenburg’s allegations. He was the only government functionary to give a reaction on the matter till late Monday.
The assertion by the senior finance ministry official, who is also on the Board of the market regulator as a part-time member in his official capacity, indicates the government too perceives that the Hindenburg charges are motivated.
Hindenburg had said on Saturday that Buch and her husband held investments in offshore entities, where a substantial amount of money was invested also by the associates of Vinod Adani, brother of Gautam Adani, the Adani group founder.
Hindenburg alleged that the Sebi had not taken any action against the Adani Group, a charge refused by the regulator, which said these have been duly investigated with 22 of 24 matters completed.
On their part, Buch and her husband Dhaval Buch stated on Sunday the investment in the offshore entities referred to by Hindenburg was made in 2015, almost two years before the former joined Sebi as a whole-time member. Buch became a whole-time member in April 2017 and took over as chairperson in March 2022.
The couple also iterated that the investment in the IPE-Plus Fund was driven by personal connections with the fund manager and was redeemed in 2018, and asserted that at no point in time did the fund invest in any bond, equity, or derivative of any Adani Group company.
The Sebi also noted that Buch had recused herself from matters involving potential conflicts of interest and made relevant disclosures. The regulator asked investors to remain calm and exercise due diligence before reacting to such reports.
Adani also rejected the allegations on Sunday and said its overseas holding structure was fully transparent.
Congress leader Rahul Gandhi wrote on X on Sunday: “Why hasn’t Sebi Chairperson Madhabi Puri Buch resigned yet? If investors lose their hard-earned money, who will be held accountable?”