Hindenburg vs Adani: Sebi chief Madhabi Buch's links need judicial probe, says former Finance Ministry secretary

Amid the raging row over the Hindenburg allegations against Sebi chairperson Madhabi Puri Buch, former Finance Ministry secretary EAS Sarma said an independent judicial panel should probe the alleged links between the Adani Group and Buch.

"The Sebi chairman, or any member, if they make any disclosure, that should be to the ministry of finance...and cabinet committee on appointments which appoints them. She cannot give a clean chit to herself," EAS Sarma told WION on Tuesday. "This is a matter that requires further enquiry".

After Hindenburg Research made fresh allegations, Sarma also wrote to Finance Minister Nirmala Sitharam. Hindenburg Research alleged that Sebi Chief Buch and her husband Dhaval Buch had investments in an offshore fund that was linked to Adani. Under her leadership, Sebi was probing earlier allegations made by the US-based activist short-seller firm. 

Hence, questions are being raised about whether Buch properly disclosed her investments to Adani-linked funds. However, Buch and her husband defended their investment record. Sarma questioned, "Did she make a disclosure to the Ministry of Finance? Was the cabinet committee on appointments and the cabinet made aware of all this? This is much more important."

Why a judicial probe

"Once there is a doubt like this, somebody has to investigate," Sarma said. "Can Sebi do that? No, it can't," he said, pointing out that regulatory authorities have recently been "compromised," and their integrity was under scrutiny. He pointed out that a former chairman of Sebi joined the board of the Adani group, which had raised eyebrows.

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