Did SEBI chief disclose stakes in Adani-linked funds to Supreme Court panel?
The court had appointed an expert committee to probe potential regulatory failure by SEBI.
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In March 2023, two months after Hindenburg Research accused the Adani Group of using opaque offshore entities to route funds into India to manipulate the stock prices of its companies, the Supreme Court tasked the Securities and Exchange Board of India with investigating the allegations.
Responding to public interest petitions, the court also created a six-member expert committee to investigate, among other things, “whether there has been regulatory failure in dealing with the alleged contravention of laws pertaining to the securities market in relation to the Adani Group or other companies”.
In May 2023, the expert committee concluded that it would “not be possible to return a finding of a regulatory failure” on the part of SEBI.
This conclusion is under fresh scrutiny after a new report released by Hindenburg Research on Saturday alleged that SEBI chairperson Madhabi Puri Buch and her husband Dhaval Buch had “hidden stakes” in the same Bermuda- and Mauritius-based offshore entities linked to the Adani Group.
The Buchs said in a statement that the investments were made before Madhabi was appointed to SEBI, and that “all disclosures” had been made as required. SEBI also said that Buch had disclosed details about her security holdings and had recused herself in matters that potentially involved a conflict of interest.
But the question that...
