NEW DELHI: In the first official response from the Ministry of Finance regarding the Hindenburg allegations against Sebi Chairperson, Madhabi Puri Buch, Economic Affairs Secretary Ajay Seth said the government has no additional comments to make on the matter. He emphasized that both the Securities and Exchange Board of India (Sebi) and the individuals involved have already provided their statements. Notably, Seth is also a part-time member in the Sebi board.
“Sebi has issued a statement, and the concerned person has given a statement. I have nothing further to add,” Seth told reporters here. Meanwhile, another official who didn’t want to be quoted said the Sebi and Buch have made statements and there is no need for finance ministry to make statements.
“All the disclosures have already been made as said by Sebi. There is no financial scandal involved. In addition to this, Sebi has already stated that she recused herself from cases wherever there was a conflict of interest,” the official said. He added that she had made investments as a private sector person and there was nothing wrong in that as long as she made relevant disclosures.
As per the official, the government will complete the probe by August-end against Adani Group after Hindenburg levelled charges of stock price manipulation against the group. Last year, Hindenburg stated that it had taken short positions in Adani companies via US-traded bonds and derivatives not traded in India. In its report, Hindenburg accused Adani of improperly utilising tax havens and raised concerns regarding the company’s high levels of debt. In response, the Adani Group dismissed the report as baseless and characterized the allegations as unsubstantiated speculation.
Sebi, in a statement issued on Sunday, had said the capital market regulator has adequate internal mechanisms for addressing issues relating to conflict of interest, which include disclosure framework and provision for recusal.
“It is noted that relevant disclosures required in terms of holdings of securities and their transfers have been made by the Chairperson from time to time. The Chairperson has also recused herself in matters involving potential conflicts of interest,” Sebi said in the statement.