SEBI has investigated all the allegations against the Adani Group, the capital markets regulator said in its first statement following a new report by US-based short seller Hindenburg Research.
Chairperson Madhabi Puri Buch made relevant disclosures from time to time and recused herself in matters involving potential conflicts of interest, SEBI said in a statement
SEBI has investigated all the allegations against the Adani Group, the capital markets regulator said in its first statement following a new report by US-based short seller Hindenburg Research.
Chairperson Madhabi Puri Buch made relevant disclosures from time to time and recused herself in matters involving potential conflicts of interest, SEBI said in a statement.
The regulator added that it has duly investigated the allegations made by Hindenburg against Adani Group, and said that last of its 26 investigations is nearing completion now.
Earlier, Buch and her husband Dhaval had called the allegations baseless and devoid of any truth. The couple said that the short seller is attacking the credibility of the capital markets regulator, and also attempting a character assassination of the chairperson.
Hindenburg Research claimed that it suspects SEBI's unwillingness to act against Adani Group may be because Buch had stakes in offshore funds linked to the conglomerate.
SEBI noted that investors should remain calm and exercise due diligence before reacting to such reports. “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,” the regulator said.
The regulator emphasised that it has adequate internal mechanisms for addressing issues relating to conflict of interest. “Relevant disclosures required in terms of holdings of securities and their transfers have been made by the Chairperson from time to time. Chairperson has also recused herself in matters involving potential conflicts of interest," it said.
"Hon’ble Supreme Court in its Order of January 3, 2024, noted that SEBI had completed twenty–two out of twenty–four investigations into the Adani group. Subsequently, one more investigation was completed in March 2024, and one remaining investigation is close to completion,” SEBI said.
According to the statement, during the ongoing investigation in this matter, more than 100 summons, around 1,100 letters and emails have been issued to seek information. In addition, more than 100 communications have been made seeking assistance from domestic/foreign regulators and external agencies. More than 300 documents containing around 12,000 pages have been examined.
SEBI also addressed the allegations that changes in REIT regulations were made to favour Blackstone, where Buch’s husband Dhaval works as an advisor. It said that regulations are notified after approval of the regulator’s board and a public consultation process.
"Therefore, the claim that promoting REITs and SM REITs among various other asset classes by SEBI was only for benefitting one large multinational financial conglomerate is inappropriate," SEBI said.
According to SEBI, over the years, it has built a robust regulatory framework that not only aligns with best global practices but also ensures protection of investors.
“SEBI remains committed to ensuring the integrity of India’s Capital markets and its orderly growth and development,” the statement added.