Hindenburg-Sebi Chief Saga: Ex FinMin Secretary Says There Should Be Judicial Probe Into Conflict Of Interest Allegations

Former finance ministry secretary EAS Sarma has also suggested for an independent judicial commission, whose head should be nominated by the Chief Justice of India, to conduct the probe in a time-bound manner and submit the report to parliament.

New Delhi: Former finance ministry secretary EAS Sarma, in an exclusive chat with WION said that there should be a probe by an independent judicial panel that will examine the alleged links between Adani group and Sebi chairperson Madhabi Puri Buch. 

Sarma had written to the finance minister after fresh allegations were made by Hindenburg Research in which the US Short seller has accused Sebi Chief of remaining 'personally invested in the same funds by the sponsor she was tasked with investing'.

"The Sebi chairman, or any member, if they make any disclosure, that should be to the ministry of finance...and cabinet committee on appointments which appoints them. She cannot give a clean chit to herself," Sarma told WION. "This is a matter that requires further enquiry".

"Did she make a disclosure to Ministry of Finance? Was the cabinet committee on appointments and the cabinet made aware of all this? This is much more important," he asserted.

Sarma has also suggested for an independent judicial commission, whose head should be nominated by the Chief Justice of India, to conduct the probe in a time-bound manner and submit the report to parliament.

Sarma's in his exclusive comments to WION after he wrote a letter to Finance Minister Nirmala Sitaraman, seeking a judicial probe into allegations levelled by Hindenburg Research against Sebi chief Madhabi Buch.

"If the accusations made by Hindenburg are factually found to be correct, all investigations conducted during the last few years by the stock market regulator on external manipulation of stock market indices by a few corporate entities through their benami agencies need to be subject to a re-investigation," said Sarma in the letter to Finance Ministry.

Late on Sunday night, Hindenburg posted a series of tweets asking her to reveal the client lists. Hindenburg, responding to Sebi chief's rebuttal on its research report published on 10 August said, "SEBI Chairperson Madhabi Buch’s response to our report includes several important admissions and raises numerous new critical questions. Buch’s response now publicly confirms her investment in an obscure Bermuda/Mauritius fund structure, alongside money allegedly siphoned by Vinod Adani. She also confirmed the fund was run by a childhood friend of her husband, who at the time was an Adani director."

Further, charging Buch with 'massive conflict of interest' allegations, Hindenburg wrote, ""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."