Photo: SEBI Chairperson Madhabi Puru Buch
Rahul Gandhi Demands SEBI Chairperson Madhabi Puri Buch’s Resignation & JPC Probe Over Hindenburg Research Allegation Report
New Delhi: Rahul Gandhi has responded to the new allegations made by the U.S. short-seller Hindenburg Research against SEBI Chairperson Madhabi Puri Buch. Gandhi expressed concerns over the allegations, suggesting that the Securities and Exchange Board of India (SEBI) is compromised and failing in its integrity. He questioned why Prime Minister Narendra Modi fears a Joint Parliamentary Committee (JPC) investigation into the matter, suggesting that recent reports from Hindenburg Research provide clarity on this fear.
On Saturday night, Hindenburg Research released a new report alleging that SEBI has been unprepared to act against the Adani Group due to Puch’s involvement in offshore funds. Gandhi highlighted that the integrity of SEBI, responsible for protecting the wealth of small retail investors, is seriously compromised by these allegations. He demanded an explanation from the government as to why Madhabi Puch has not yet resigned and who is responsible if retail investors lose their hard-earned money—whether it be Prime Minister Modi, SEBI Chairperson Puch, or Gautam Adani. He urged the Supreme Court to review the matter once again in light of the new and serious allegations.
Hindenburg Research has accused Puch and her husband of secretly investing in offshore funds based in Bermuda and Mauritius. These funds are alleged to have been used by Vinod Adani, Gautam Adani’s brother, to manipulate stock prices through round-tripping.
Adani Group Denies Allegations
The Adani Group has denied Hindenburg Research’s allegations, stating that the report is a disregard for Indian laws and a result of pre-determined conclusions aimed at personal gain. The Adani Group has completely rejected the accusations and asserts that they have been thoroughly investigated and proven baseless. The Supreme Court dismissed similar allegations in January 2024, and Hindenburg Research is accused of reusing discredited claims.
The Adani Group clarified that Anil Ahuja, mentioned in the allegations, previously served as a nominee director and later as a director in Adani companies, but there are no current commercial ties with the individuals or incidents mentioned in the report. Hindenburg’s claims about investments by SEBI Chairperson Madhabi Puch and her husband in secret foreign companies are alleged to have hindered the investigation into Adani. The Adani Group has rejected these claims.
The new allegations come 18 months after Hindenburg Research first raised issues related to insider trading and other violations in the stock market against Adani Group companies.
