
India Markets Regulator Urges Investors to Stay Calm Amid Hindenburg Allegations Against Chief
MUMBAI (Reuters) – India’s market regulator urged investors on Sunday to maintain composure and conduct thorough research before acting on reports like those from the US-based shortseller Hindenburg Research.
On Saturday, Hindenburg claimed that Madhabi Puri Buch, the head of the Securities and Exchange Board of India (SEBI), previously had investments in offshore funds that were also associated with the Adani Group.
In its response, SEBI stated that the allegations made by Hindenburg regarding the Adani Group had been thoroughly examined by the regulator, with 23 out of 24 investigations concluded by March 2024. The final investigation is nearing completion.
"As a matter of policy, SEBI refrains from commenting on any ongoing investigation or enforcement matter," the regulator noted.
In defense of its chairperson, SEBI emphasized that Buch had made all necessary disclosures regarding her securities holdings and transfers, and she has stepped back from decisions involving any potential conflicts of interest.
Buch also clarified in a separate statement that her investment in the offshore funds mentioned in the Hindenburg report occurred two years prior to her appointment at SEBI.
Meanwhile, Indian equity markets have shown remarkable growth, attracting significant investments from both domestic institutional and retail investors. The benchmark Nifty index has risen by 11.87% over the last six months.
A mutual fund industry body, in response to the Hindenburg report, labeled it as an attempt to create buzz by linking unrelated historical events. The Association of Mutual Funds in India asserted that India’s financial system is secure, transparent, and designed to promote growth and innovation with a high degree of integrity.