American short seller Hindenburg, in its recent report, has claimed a connection between Adani Group and SEBI Chief Madhabi Puri Buch. However, SEBI Chief Madhabi Puri Buch has denied these allegations. But the opposition is attacking the SEBI chief and the central government. In such a situation, it is important to know what SEBI is and how it works. What are the roles of SEBI chief?
SEBI ‘monitors’ the market
Let us tell you that Securities and Exchange Board of India (SEBI) is the major regulatory institution of India, which is responsible for monitoring and controlling the Indian stock market and other securities markets. The main objective of SEBI is to protect the interests of investors, ensure transparency and efficiency of trading in securities. SEBI was formed by the Government of India on 12 April 1988. But, it got legal rights and autonomy on January 30, 1992. Its headquarters is in Mumbai. Its regional offices are in cities like Delhi, Chennai, Kolkata and Ahmedabad.
SEBI Chairman is appointed by the Government of India. The Chairman is the senior most officer of SEBI who is responsible for all the functions and policies of the Board. Apart from the SEBI Chief, the Board consists of 3 to 5 full-time members. They have many responsibilities including regulation of financial markets. Apart from this, SEBI also has two members nominated from the Finance Ministry and the Reserve Bank.
Know what is the work of SEBI
Let us tell you that before the Lok Sabha elections, the Indian stock market had created history. For the first time the market had joined the 5 trillion dollar club. Then it was expected that India would soon become the world’s largest top market. The job of SEBI is to protect the interests of investors. SEBI has the authority to make rules. It is also responsible for preventing manipulation and fraud related to business in the capital market. They have the power to enforce and settle other disputes. SEBI’s job is to register mutual fund securities and also keep track of their activities. Besides, SEBI also plays an important role in the listing of new companies.
What allegations did Hindenburg make?
The report released by Hindenburg on Saturday claimed that whistleblower documents reveal that Madhabi Buch and her husband Dhaval Buch opened their account with IPE Plus Fund 1 in Singapore on June 5, 2015. The total investment of the couple in this is estimated at 10 million dollars. Hindenburg alleged that the offshore Mauritius fund was set up by a director of Adani Group through India Infoline and is registered in tax haven Mauritius.
The couple denied the allegations
The Buch couple have denied the allegations made by Hindenburg. The Buchs said they had invested in IPE Plus Fund 1 managed by 360 One Asset & Wealth Management (formerly IIFL Wealth Management) in 2015. This investment was made by him two years before Madhabi joined SEBI as a whole-time member when both of them lived in Singapore as private citizens. According to the statement, the decision to invest in the fund was taken because Chief Investment Officer Anil Ahuja is Dhawal’s childhood friend from school and IIT Delhi and has decades of experience as a former employee of Citibank, JP Morgan and 3i Group PLC. Had a strong investment career.
‘Our life is an open book’
Rejecting the allegations outright, SEBI Chairperson Madhabi Puri Buch and her husband Dhawal Buch said in a statement issued early on Sunday morning that the allegations made in the Hindenburg report on August 10 are baseless and there is no truth in them. Not there. Our life and finances are like an open book. Whatever disclosures we needed to make, all that information has been given to SEBI over the years.