The recent allegations against SEBI Chairperson Madhabi Buch and her husband by the US short seller Hindenburg Research have sparked significant controversy in India.
The accusations, which suggest that the Buchs had stakes in offshore entities linked to the Adani Group, have led to a strong response from both the Bharatiya Janata Party (BJP) and the SEBI Chairperson herself.
BJP leader Rajeev Chandrashekhar was quick to dismiss the report, calling it part of a larger conspiracy to destabilise India’s financial system. According to Chandrashekhar, the allegations are not only unfounded but also part of an ongoing effort by certain forces to discredit India’s economy.
He accused the Congress party of seeking foreign assistance to create chaos in the country, particularly by attacking the credibility of independent regulators like SEBI.
Chandrashekhar emphasised that the report is filled with innuendos and speculation, tied together with minimal facts. He argued that India’s financial system is one of the strongest in the world, citing the stability of Indian banks and the rapid growth of the economy as evidence. The BJP leader stressed that such baseless attacks on India’s financial institutions are a threat to the nation’s progress and should not be tolerated.
Adding to this, BJP spokesperson Sudhanshu Trivedi also pointed fingers at the Congress party, suggesting that the timing of such foreign reports is suspicious.
He noted that these reports often emerge just before important parliamentary sessions, implying that they are part of a coordinated effort to disrupt India’s political stability.
Trivedi further questioned the Congress party’s longstanding association with foreign entities, referencing past controversies involving companies like Union Carbide and Bofors.
The SEBI Chairperson and her husband responded to the allegations with a strong statement, denying any wrongdoing. They accused Hindenburg Research of attempting to assassinate their character in retaliation for enforcement actions taken against the firm by SEBI. The Buchs maintained that their finances are transparent and that all necessary disclosures have been made to SEBI over the years.
The Adani Group, which has been at the centre of these allegations, also issued a statement dismissing the claims as malicious and manipulative. The conglomerate asserted that Hindenburg’s accusations are based on selective information and are intended to damage the company’s reputation for personal gain.
This controversy is not the first time Hindenburg Research has targeted the Adani Group. In January 2023, the firm published a report accusing the conglomerate of stock manipulation and fraud, leading to a significant drop in Adani’s share prices. The Adani Group had strongly denied those allegations at the time.
As the debate continues, the focus remains on the credibility of these accusations and the potential impact they may have on India’s financial system. The situation underscores the broader concerns about the influence of foreign entities on India’s internal affairs and the ongoing efforts to protect the integrity of the nation’s economy.
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