Sebi Hindenburg Row: The finance ministry has reportedly clarified that there are no plans to form a panel to investigate allegations made by Hindenburg Research against SEBI chairperson Madhabi Puri Buch.
As per sources cited in a report by Moneycontrol, the Finance Ministry has dismissed any plans to establish a panel to investigate the allegations made by the short seller against Madhabi Puri Buch. Earlier this month, Informist cited a senior official in its report, stating that the ministry was considering forming such a panel.
The report also mentioned that the proposed panel might include both full-time and part-time members of the Sebi board alongside government officials. The official added that discussions on forming the panel are ongoing, but the Finance Ministry has not yet finalised the constitution of the panel.
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What is the Sebi-Hindenburg Row?
Last year, the US-based short seller Hindenburg Research shook the market by alleging that Adani group firms were involved in financial misconduct and accounting fraud. This led to a sharp decline in the stock prices of all listed Adani companies.
However, after a year of investigations by regulatory bodies, most Adani firms have returned to their original price levels.
In August, Hindenburg released a new report accusing Sebi chairperson Madhabi Puri Buch and her husband Dhaval Buch of being involved in siphoning funds offshore. Buch dismissed the allegations and accused the short-seller of "character assassination".
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What was worth noting this time is that despite the new allegations, the markets have remained largely unaffected by Hindenburg's latest report.
The flagship company of the Adani firm Adani Enterprises has delivered a return of nearly 6 per cent on the National Stock Exchange (year-to-date basis).
