AAP Urges Supreme Court to Address SEBI Chief Allegations Amid Hindenburg Dispute

The AAP demands the Supreme Court's intervention over allegations by Hindenburg Research against SEBI chief Madhabi Puri Buch. The claims suggest conflicts of interest involving the Adani Group, which Madhabi Puri Buch denies. SEBI's ongoing investigations into Adani Group's offshore holdings add complexity to the controversy.

The Aam Aadmi Party (AAP) on Sunday called for the Supreme Court to intervene after allegations from US short seller Hindenburg Research against SEBI chief Madhabi Puri Buch.

Hindenburg Research has accused Buch of potentially having conflicts of interest tied to offshore funds linked to the Adani Group, charges she has strongly denied as 'baseless' and a form of 'character assassination.'

During a press conference, AAP Rajya Sabha MP Sanjay Singh revealed that the SEBI had informed a Supreme Court panel that its investigation into the Adani Group was 'directionless.' Singh pointed out that undisclosed investments by Buch's family in shell companies are a significant concern.

In October 2020, the Securities and Exchange Board of India (SEBI) began investigating the shareholding structure of the Adani Group, focusing on foreign investor interests. The probe questioned whether these investors are genuine shareholders or fronts for promoters.

Last year, SEBI reported to a Supreme Court-appointed panel that it was scrutinizing 13 opaque offshore entities holding significant stakes in Adani's publicly traded stocks. SEBI's lack of clarity on the probe's status has fueled Hindenburg's criticism of the regulatory body.

Madhabi Puri Buch and her husband Dhaval Buch have jointly rejected Hindenburg's claims, labeling them as unfounded attempts at character assassination, especially since SEBI had previously taken enforcement actions against Hindenburg.

(With inputs from agencies.)