In response to the allegations made by US-based shortseller Hindenburg Research, India’s markets regulator, SEBI, issued a statement urging investors to remain calm and conduct proper due diligence before reacting. The allegations pertained to SEBI’s head, Madhabi Puri Buch, and her previous investments in offshore funds associated with the Adani Group.
SEBI revealed that the allegations against the Adani Group have been thoroughly investigated, with 23 out of 24 investigations completed as of March 2024. The remaining investigation is close to being finalized. Despite this, SEBI maintains a policy of refraining from commenting on ongoing investigations and enforcement matters.
In defense of Buch, SEBI emphasized that she had made all necessary disclosures regarding her securities holdings and transfers. Additionally, Buch has recused herself from any matters that could potentially pose a conflict of interest. Buch herself clarified that her investments in offshore funds, as mentioned in the Hindenburg report, predate her tenure at SEBI by two years.
The Indian equity markets have been witnessing significant growth, attracting a substantial influx of funds from both domestic institutional and retail investors. The Nifty index, a key benchmark, has surged by 11.87% over the past six months. The Association of Mutual Funds in India has affirmed that the country’s financial system is secure, transparent, and conducive to promoting growth and innovation, all within a framework of high integrity.
Overall, SEBI’s response to the allegations underscores the importance of maintaining composure and conducting thorough research before making investment decisions. The regulatory body’s commitment to transparency and integrity, as well as its adherence to established protocols in handling such matters, serves to instill confidence in the market participants and reaffirms its dedication to upholding the interests of investors.