Hindenburg Research Accuses SEBI Chief Madhabi Puri Buch of Misconduct
Allegations of Offshore Accounts and Conflict of Interest
US-based short-seller Hindenburg Research has released a report alleging serious misconduct by Securities and Exchange Board of India (SEBI) Chairperson Madhabi Puri Buch. The report claims that Buch and her husband, Dhaval Buch, have stakes in offshore entities that have been linked to dubious financial activities.
Charges of Conflict of Interest
Hindenburg alleges that Buch has violated conflict-of-interest rules by owning shares in companies that are regulated by SEBI. The report cites whistleblower documents that show that Buch and her husband held shares in Grandall Holdings, a Cayman Islands-based entity that has allegedly engaged in tax evasion and money laundering.
Offshore Holdings and Hidden Interests
The report also alleges that Buch and her husband have hidden their offshore holdings from the public. According to Hindenburg, the Buchs have used nominee directors and shell companies to conceal their ownership of Grandall Holdings and other offshore entities.
Potential Impact on SEBI's Credibility
The allegations against Buch have raised serious concerns about the credibility of SEBI, India's top financial regulatory body. If the allegations are true, it could undermine public trust in SEBI's ability to regulate the Indian securities market effectively.
SEBI's Response
SEBI has yet to respond publicly to Hindenburg's report. The allegations are currently under investigation by various regulatory agencies.
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