 "Sebi chairperson Madhabi Puri Buch")
Sebi chairperson Madhabi Puri Buch
“If an allegation is made against the chairperson, even though eight other members are part of the Sebi board, a statement under her leadership does not really make sense….,” a senior government official was cited as saying by the Informist report.
The panel may have members who are whole-time and part-time members of the market regulator’s board and government officials, the official added.
The development is linked to US short-seller Hindenburg Research’s August 10 allegations against Buch and her husband, claiming they had alleged investments in obscure offshore funds, which were used in the “Adani money syphoning scandal.” Hindenburg’s latest allegation is linked to its January 2023 report, alleging financial misconduct and stock manipulation by the Adani Group.
The agency said that the market regulator circumvented its probe into the past allegations against Adani Group because Buch had a conflict of interest in the matter.
Buchs, Sebi, and Adani Group had refuted the latest allegations.
Buch’s earnings from consultancy firm ‘breach of rules’
Buch joined Sebi in 2017 and was appointed its chief in March 2022. Hindenburg, in its new report, flagged two consultancy firms: Singapore-based Agora Partners and India-based Agora Advisory, run by Buch and her husband Dhaval Buch.
Based on the documents from the Registrar of Companies, Reuters earlier reported that Buch, in her seven year association with the Sebi, held a 99 per cent stake in Agora Advisory and earned a revenue of Rs 3.71 crore. This is in violation of a 2008 Sebi policy, which bars its officials from earning income from other professional activities.
In her earlier comments, Buch had said that she had made all relevant disclosures.
According to Reuters, Buch transferred her shares in Agora Partners to her husband in March 2022 but held shares in the Indian unit, which is a “very serious” breach of conduct, Subhash Chandra Garg, a former top bureaucrat said.
First Published: Aug 20 2024 | 3:14 PM IST
