Congress Urges JPC Probe Into SEBI Chairperson Allegations by Hindenburg

The Congress criticised the Modi government on Sunday over allegations by Hindenburg Research against SEBI chairperson Madhabi Buch. Rahul Gandhi claimed the market regulator's integrity has been severely compromised and called for a Joint Parliamentary Committee (JPC) probe into the matter. He also questioned Prime Minister Narendra Modi's reluctance to allow such an investigation.

Gandhi stated, "The integrity of SEBI, the securities regulator entrusted with safeguarding the wealth of small retail investors, has been gravely compromised by the allegations against its Chairperson." He further questioned, "If investors lose their hard-earned money, who will be held accountable -- PM Modi, the SEBI Chairperson, or Gautam Adani?"

Allegations Against SEBI Chairperson

Hindenburg Research accused Buch and her husband of having stakes in offshore funds involved in the alleged Adani money siphoning scandal. Both Buch and her husband have denied these claims, calling them baseless and asserting that their finances are transparent. The Adani Group also dismissed the allegations as malicious and based on selective public information.

Congress president Mallikarjun Kharge highlighted that SEBI had previously cleared Adani before the Supreme Court following the January 2023 Hindenburg Report revelations. He mentioned new allegations suggesting a quid-pro-quo involving Buch. Kharge emphasised the need to protect small and medium investors who trust SEBI with their investments.

Congress Demands Action

Congress spokesperson Supriya Shrinate raised several questions at a press conference. She asked whether Buch disclosed her shareholding in Agora Partners and if she transferred her stake to her husband in 2022. Shrinate also queried whether Buch informed SEBI about her husband's association with Blackstone.

Shrinate further questioned if Buch recused herself from investigations involving funds she or her husband had invested in. She asked if Buch should continue in her position given the serious allegations against her. Shrinate also posed questions to the government regarding its stance on these allegations surrounding its market regulator.

Supreme Court's Role

The Congress urged the Supreme Court to take suo motu cognisance of the scam and investigate it under its supervision. They argued that since SEBI is accused of involvement, an independent investigation is crucial. Gandhi asked if the Supreme Court would look into this matter again given the new allegations.

In a statement reposted on X, Congress general secretary Jairam Ramesh criticised SEBI's reluctance to investigate the Adani mega scam. He noted that SEBI had diluted reporting requirements related to foreign funds' actual ownership in 2018 and deleted them entirely in 2019. This, he said, tied SEBI's hands despite suspecting wrongdoing.

Political Reactions

Ramesh also responded to BJP's claims that Congress's attack was almost simultaneous with Hindenburg's statements. He clarified that Hindenburg released their report at 9:57 PM on August 10th, while Congress issued their statement at 11:49 PM on the same day. Ramesh stated, "Our opponents can’t bear to see our rapid response time."

Kharge expressed concerns that PM Modi might continue shielding his ally, compromising India's constitutional institutions built over seven decades. He stressed that a JPC inquiry is essential to investigate this massive scandal thoroughly.

The government must act immediately to eliminate all conflicts of interest in SEBI's investigation of Adani, Ramesh added. He pointed out that Gautam Adani met with Buch twice in quick succession after she became SEBI chairperson, raising fresh questions about their interactions.

The Congress continues to demand accountability and transparency from both SEBI and the government regarding these serious allegations. They insist on protecting investors' interests and maintaining trust in India's regulatory institutions.