SEBI claims its chief recused herself where needed, Hindenburg says rebuttal raises new questions

The Securities and Exchange Board of India said on Sunday that its chairperson Madhabi Buch disclosed details about her security holdings and recused herself in matters that potentially involved a conflict of interest.

The regulator made the statement a day after American short-seller Hindenburg Research alleged that Madhabi Buch and her husband Dhaval Buch had “hidden stakes” in offshore entities tied to stock price manipulation and money laundering by the Adani Group.

Madhabi and Dhaval Buch denied the allegations in a statement to the press. Hindenburg Research, however, said that their response included several important admissions and raised numerous new critical questions.

The Securities and Exchange Board of India said on Sunday that it has adequate internal mechanisms for addressing any conflict of interest, which include a “disclosure framework and provision for recusal”.

The market regulator urged investors to remain calm and exercise due diligence before reacting to reports such as the one by Hindenburg. “Investors may also like to take note of the disclaimer in the report that states that readers should assume that Hindenburg Research may have short positions in the securities covered in the report,” it added.

The market regulator, responding to Hindenburg’s allegation of inaction against the Adani Group, said that it investigated the American short-seller’s allegations against the conglomerate.

On January...

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