Hindenburg row: Rahul Gandhi says integrity of SEBI 'gravely compromised', attacks PM Modi

Pic/PTI

Leader of Opposition in the Lok Sabha Rahul Gandhi on Sunday said the integrity of SEBI has been "gravely compromised" by the allegations against its chairperson and asked whether the Supreme Court would look into this matter suo motu once again.

The Congress leader also attacked Prime Minister Narendra Modi over the Hindenburg row, saying that it is now "abundantly clear why PM Modi is so afraid" of a joint parliamentary committee (JPC) probe.

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His remarks came after US short-seller Hindenburg Research on Saturday alleged that market regulator SEBI chairperson Madhabi Buch and her husband had stakes in obscure offshore funds used in the alleged Adani money siphoning scandal.

In a post on X, Rahul Gandhi said, "The integrity of SEBI, the securities regulator entrusted with safeguarding the wealth of small retail investors, has been gravely compromised by the allegations against its Chairperson."

"Honest investors across the country have pressing questions for the government: Why hasn't SEBI Chairperson Madhabi Puri Buch resigned yet? If investors lose their hard-earned money, who will be held accountable -- PM Modi, the SEBI Chairperson, or Gautam Adani?" the former Congress chief said while speaking about Hindenburg row.

In light of the new and "very serious" allegations that have surfaced, will the Supreme Court look into this matter suo motu once again, Gandhi asked.

"It is now abundantly clear why Prime Minister (Narendra) Modi is so afraid of a JPC (joint parliamentary committee) probe and what it might reveal," he said.

Gandhi also posted his video statement on the issue in which he said that it is his duty as the Leader of Opposition to bring to people's notice that there is a "significant risk" in the Indian stock market because the institution that governs the market is "compromised".

"Imagine you are watching an international cricket match between India and Australia and every single person who is watching the match and those playing the match know that the umpire is compromised. What would happen to the fairness of the match, what would happen to the outcomes. How would you feel as somebody who is participating in the match?" Gandhi said in the video.

This is exactly what is happening in the Indian stock market, he added.

Over the last few years, a larger and larger number of people have been investing in India's stock market, he said.

"They invest their hard-earned, honestly-earned savings in the stock market and it is my duty as Leader of the Opposition to bring to your notice that there is a significant risk in the Indian stock market because the institution that governs the stock market is compromised," he said.

"Now I am going to explain to you exactly how and why it is compromised. A very serious allegation against the Adani group was illegal share ownership and price manipulation using offshore funds. It has now emerged that the SEBI chairwoman Madhabi Buch and her husband had an interest in one of those funds. This is an explosive allegation because it alleges that the umpire herself is compromised," Gandhi said.

The savings of millions of Indians, hard earned, honestly-earned savings are at risk, he said.

It is, therefore, imperative that this matter is investigated, Gandhi asserted.
Securities and Exchange Board of India (SEBI) Chairman Buch and her husband have denied the allegations as baseless and asserted their finances are an open book.

SEBI said allegations against the Adani group have been "duly investigated", and Chairperson Buch disclosed and recused herself from time to time when dealing with matters.

The Adani group termed the latest allegations malicious and based on manipulation of select public information. The company said it has no commercial relationship with the SEBI chairperson or her husband.