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Hindenburg Report: Did Sebi Chief Make Necessary Disclosures? Arguments, Counter-Arguments Follow
A former Sebi board member has told the Indian Express newspaper that there had been an instance in the past when the chairperson recused himself over what could be seen as conflict of interest. Questions are now being asked if Sebi chief Madhabi Puri Buch failed to disclose her links to Adani Enterprises.
New Delhi: After the fresh rounds of allegations that US based short seller Hindenburg has levelled against Sebi Chief Madhabi Puri Buch, guns are being trained at her again if proper disclosures were made or not. Hindenburg threw down the gauntlet, asking if the Sebi chief will publicly release the full list of consulting clients and details of the engagements.
A former Sebi board member has told the Indian Express newspaper that there had been an instance in the past when the chairperson recused himself over what could be seen as conflict of interest. Questions are now being asked if Sebi chief Madhabi Puri Buch failed to disclose her links to Adani Enterprises.
The Indian Express, quoting former head of the market regulator wrote, “What is important to know is her conduct as a whole time member or the chairperson of SEBI when Adani-related complaints or investigations came to her desk. Did she recuse herself.”
Although, Sebi had in a press release late last night said, relevant disclosures have been made by the Sebi chief from time to time, Hindenburg's latest allegations mention that it is a massive conflict of interest.
Sebi wrote, "...it is emphasized that SEBI has adequate internal mechanisms for addressing issues relating to conflict of interest, which include disclosure framework and provision for recusal. It is noted that relevant disclosures required in terms of holdings of securities and their transfers have been made by the Chairperson from time to time. Chairperson has also recused herself in matters involving potential conflicts of interest."
Hindenburg's Latest Allegations Via Series Of Tweets
In a series of tweets, late on Sunday night, Hindenburg alleged, "SEBI was tasked with investigating investment funds relating to the Adani matter, which would include funds Ms. Buch WAS PERSONALLY INVESTED IN and funds by the same sponsor which were specifically highlighted in our original report. This is obviously a massive conflict of interest."
The American short seller also asks if the SEBI Chairperson will 'commit to a full, transparent and public investigation into these issues?'.