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Tag: Hindenburg-Sebi Chief Saga

  • Sebi Refuses To Disclose Instances When Madhabi Buch Recused On Conflict Of Interest, Says THIS In RTI Response | Economy News

    New Delhi: The cases where SEBI chairperson Madhabi Puri Buch recused herself due to potential conflict of interest is not “readily” available and collating them would “disproportionately divert” its resources, the securities market regulator said in an RTI response on Friday.

    What Did Sebi Say In RTI Response?

    In the response furnished to transparency activist Commodore Lokesh Batra (retd), the regulator also refused to provide copies of Buch’s declarations to the government and SEBI Board on the financial assets and equities held by her and her family members on the grounds of these being “personal information” and that their disclosure may “endanger” personal safety. (Also Read: Congress’ Fresh Salvo At Buch)

    It also denied to disclose the dates on which the disclosures were made. The SEBI Central Public Information Officer (CPIO) used the grounds of “personal information” and “safety” to deny copy of those declarations.

    “Since the information sought do not pertain to you and the same relates to personal information, the disclosure of which has no relationship to any public activity or interest and mat cause unwarranted invasion into the privacy of the individual and may also endanger the life or physical safety of the person(s). The same is, therefore exempt in terms of Section 8(1)(g) and 8(1)(j) of the RTI Act, 2005,” the RTI response said.

    “Further the information on cases where Madhabi Puri Buch recused herself due to potential conflicts of interest during her tenure is not readily available and collating the same will lead to disproportionately diverting the resources of the public authority in terms of Section 7(9) of the RTI Act,” it said.

    Section 8(1)(g) allows a public authority to withhold information the disclosure of which would endanger the life and physical safety of any person and section 8(1)(j) allows withholding information which relates to personal information the disclosure of which has no relationship to any public activity or interest.

    A CPIO may still disclose information if public interest in disclosure outweighs the harm to the protected interests.

    A press release from SEBI on August 11 had claimed that the chairperson has recused herself in matters involving potential conflict of interest.

    “It is noted that relevant disclosures required in terms of holdings of securities and their transfers have been made by the Chairperson from time to time,” it had said.

    The US-based short seller Hindenburg Research alleged that it suspects SEBI’s unwillingness to act against the Adani group may be because Buch had stakes in offshore funds linked to the conglomerate.

    The short seller had alleged that Buch and her husband Dhaval had invested in one of the funds which was allegedly being used by Vinod Adani. It also flagged Dhaval’s association with private equity major Blackstone, a promoter of multiple real estate investment trusts (REITs) and Sebi’s continued pitch for the new investment avenue.

    “The allegations made by Hindenburg Research, against the Adani Group, have been duly investigated by Sebi,” the capital markets regulator had said in the statement.

    The Supreme Court had itself noted in an order in January that 24 out of 26 investigations against Adani had been completed, it said, adding that one more was completed in March and the last is nearing completion now.

  • Hindenburg Alleges Swiss Authorities Have Frozen Adani Funds, Company Responds | Companies News

    Ahmedabad: The Adani Group on Thursday unequivocally rejected and denied baseless allegations regarding claims by US short-seller Hindenburg Research that Swiss authorities have frozen its funds.

     Dismissing the latest allegations, an Adani Group spokesperson denied the baseless claims.

    “We unequivocally reject and deny the baseless allegations presented. The Adani Group has no involvement in any Swiss court proceedings, nor have any of our company accounts been subject to sequestration by any authority,” said the company spokesperson.

    “Furthermore, even in the alleged order, the Swiss court has neither mentioned our group companies, nor have we received any requests for clarification or information from any such authority or regulatory body. We reiterate that our overseas holding structure is transparent, fully disclosed, and compliant with all relevant laws,” the spokesperson added.

    The spokesperson further said that these allegations are “clearly preposterous, irrational, and absurd”.

    “We have no hesitation in stating that this is yet another orchestrated and egregious attempt by the same cohorts acting in unison to inflict irreversible damage on our group’s reputation and market value,” said the spokesperson.

    The Adani Group remains “steadfastly committed to transparency and compliance with all legal and regulatory requirements”, the spokesperson noted.

    Last month, industry experts had slammed earlier Hindenburg allegations as not merely frivolous but cheap antics, saying the US short-seller has nothing substantial to talk about even 18 months later.

  • Congress Fires Fresh Salvo At Sebi Chief Madhabi Puri Buch, Targets ICICI Bank On Giving Excess Pension To Her | Economy News

    New Delhi: The opposition Congress on Tuesday launched fresh tirade against Sebi Chairperson Madhabi Puri Buch over receiving regular income from private lender ICICI Bank and arm ICICI Prudential, while being the whole-time member and later Chairperson of the capital markets regulatory body.

    Pawan Khera, Chairman, Media and Publicity Department, Congress, in a press conference said, “We asked three questions yesterday (which was directed towards ICICI bank, PN and Buch. Of the three, ICICI bank responded to our allegations, which has infact helped us in un-layering this expose further.” (Also Read: Trouble Mounts For Madhabi Puri Buch)

    Khera further claimed that ICICI bank paid pensions to Buch which varied in various years and was not steady. He added that Buch availed ESOPs from ICICI even after superannuation from the Group. He questioned as to how retirement benefits or pensions be more than the annual average salary that Buch drew from ICICI.

    Khera also raised questions on the TDS being paid by ICICI Bank on ESOPs to Buch. (Also read: Buch Responsible For ZEEL-Sony Deal Failure)

    “Why did ICICI pay the TDS on ESOPs on behalf of Buch? Does the bank follow the same protocol for all its past and present employees? Why didi ICICI not offer this TDS amount as taxable income of Buch? Is this not a clear non-compliance of the Income Tax Act?,” questioned Khera.

    Read Congress’ Latest Expose On Madhabi Puri Buch And ICICI Bank Via This Tweet Thread
     

    Statement by Shri Pawan Khera, Chairman, Media & Publicity (Communication Deptt), AICC. pic.twitter.com/E3S96g3Zoy
    — INC Sandesh (@INCSandesh) September 3, 2024

    Response Of ICICI Bank On Congress’ Allegations 

    ICICI Bank in a stock exchanges in a filing, hours after the Congress party labeled office-for-profit charge against Buch yesterday said that the bank or its group of companies have not paid any salary or granted any employee stock ownership plan (ESOPs) to SEBI Chairperson Madhabi Puri Buch after her retirement, other than her retiral benefits.

    “During her employment with the ICICI Group, she received compensation in the form of salary, retiral benefits, bonus and ESOPs, in line with applicable policies,” the ICICI Bank exchange filing read.

    Buch had opted for superannuation from the Group with effect from October 31, 2013. Under the bank’s ESOP rules, the ESOPs vest over the next few years from the date of allotment, the lender asserted in the filing. “As per rules existing at the time of her ESOP grant, employees including retired employees had the choice to exercise their ESOPs anytime up to a period of 10 years from the date of vesting.”

    “As per Income Tax rules, the difference between the price of the stock on the day of exercise and the allotment price is treated as perquisite income and is reflected in Part B of the Form16 of employees, including retired employees. The Bank is required to deduct the perquisite tax on this income. In addition, Form -16 covers the payment made towards the retiral benefits of former employees,” the exchange filing added.

    All the payments made to Buch post her retirement had accrued to her during her employment phase with the ICICI Group.

    Those payments comprised ESOPs and retiral benefits, the lender’s exchange filing concludes.

    With ANI Inputs

  • New Revelation About SEBI Chief Madhabi Puri Buch: Same Address Of Consultancy Firm and Auditor Sparks Row | Economy News

    New Delhi: American short-seller firm Hindenburg recently released a sensational report targeting SEBI Chief Madhabi Puri Buch. In its revelations, Hindenburg levelled serious allegations against Buch, accusing her of favouring Adani’s companies for personal gain. Now, another serious accusation has surfaced, raising significant questions about a potential conflict of interest involving SEBI Chairperson Madhabi Puri Buch.

    New Revelation About Madhabi Buch

    According to a Reuters report, it was revealed that during her seven-year tenure, Madhabi Buch continued to receive income from a consultancy firm. Reuters published its report after reviewing public documents. It has now been claimed in a report that the address of the consultancy firm established by Buch is the same as that of the auditor firm responsible for auditing it.

    In other words, the auditors who reviewed the firm’s finances are registered at the same address as Buch’s consultancy. This revelation comes from documents filed with the Registrar of Companies. According to the report, Buch’s firm’s audit was handled by Shah and Savla LLP, and the address is the same as that of Buch’s firm, both located in the Ghatkopar area of Mumbai.

    SEBI Chief Under Scrutiny Again

    The documents referenced in the report are registered with the Registrar of Companies. These include the 2023-2024 balance sheet for Agora Advisory Private Limited, which lists an address in the Ghatkopar area of Mumbai. Interestingly, when the address of the auditing firm, Shah and Savla LLP, was checked, it was found to be the same. Both addresses are in Ghatkopar and mention office number 201. The report also notes that other firms established by Madhabi Buch have the same address listed.

    Husband Managing Firms After Buch’s SEBI Appointment

    Before joining SEBI in 2017, Madhabi Buch had already distanced herself from these firms. Currently, her husband, Dhawal, holds director positions in these companies. However, recent financial disclosures related to these firms have raised serious questions. For context, Madhabi Buch joined SEBI in 2017 and became its chairperson in 2022.

  • ‘Umpire Of Stock Market Compromised…’: Rahul’s Cricket Analogy On Hindenburg Allegations On SEBI Chief |

    In a scathing attack on the government, Congress MP Rahul Gandhi has alleged that the Indian stock market is compromised due to the regulator, SEBI, being influenced by external factors. Gandhi drew an analogy with a cricket match, stating that if the umpire is compromised, the fairness and outcome of the match are questionable.

     “(Imagine) 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 match? What would happen to the fairness of the match and the outcome? How would you feel as somebody who is participating in the match? This is exactly what is happening in the Indian stock market,” the Leader of Oppostion said.

    “Over the last few years, larger and larger numbers of people have been investing in India’s stock market. They invest their hard earned, honestly earned savings into the stock market. It is my duty as Leader of the Opposition (in Lok Sabha) 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 added.

    Gandhi’s comments come in the wake of the Hindenburg report, which alleged that SEBI head Madhabi Buch had stakes in obscure offshore funds used in the Adani scandal. The Congress leader emphasized that it is his duty to bring this issue to the notice of the public, as millions of people have invested their hard-earned savings in the stock market.

    VIDEO | “(Imagine) 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 match? What would happen to the fairness of the match and the… pic.twitter.com/TFP6WEqqMO


    — Press Trust of India (@PTI_News) August 11, 2024

    In a X post, the Congress MP wrote, 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? – In light of the new and very serious allegations that have surfaced, will the Supreme Court look into this matter suo moto once again? It is now abundantly clear why Prime Minister Modi is so afraid of a JPC probe and what it might reveal,” he said further in the same post.

  • Hindenburg’s Allegations: Sebi Issues Statement For Investors, Check What The Market Regulator Said | Economy News

    New Delhi: Market regulator Securities and Exchange Board of India (Sebi), has issued a statement for investors amidst the recent research report released by US-based short seller Hindenburg Research. Sebi has asked the Investors to remain calm and exercise due diligence before reacting to such reports.

    “SEBI takes note of the report published by Hindenburg Research on August 10, 2024. Investors should remain calm and exercise due diligence before reacting to such reports. Investors may also like to take note of the disclaimer in the report that states that readers should assume that Hindenburg Research may have short positions in the securities covered in the report,” said the market regulator. (Read More: Check Direct Link Of The Research Report)

    Responding to the charges levelled against Sebi on not taking ‘ action against the Adani Group’, the regulator said, the allegations made by Hindenburg Research, against the Adani Group, have been duly investigated by SEBI. (Read More: Sebi Chief Madhabi Puri Buch Gives Point-By-Point Rebuttal)

    “Hon’ble Supreme Court in its Order of January 3, 2024 noted that SEBI had completed twenty–two out of twenty–four investigations into the Adani group. Subsequently, one more investigation was completed in March 2024, and one remaining investigation is close to completion. During the ongoing investigation in this matter, more than 100 summons, around 1,100 letters and emails have been issued to seek information. Further, more than 100 communications have been made seeking assistance from domestic/foreign regulators and external agencies. Also more than 300 documents containing around 12,000 pages have been examined,” added Sebi.

    Sebi reiterated that as a matter of policy, it refrains from commenting on any investigation/ ongoing enforcement matter.

    “It may be noted that pursuant to the completion of investigations, SEBI initiates enforcement proceedings which are quasi–judicial in nature. This comprises issuing of show cause notice and giving of opportunity of hearing which culminates in the passing of a speaking order. Such order is then made available in the public domain. Where investigations have been completed, enforcement proceedings initiated are ongoing and appropriate actions are being taken in accordance with the applicable securities laws,” the Sebi statement said.

    SEBI, said that over the years, it has built a robust regulatory framework that not only aligns with best global practices but also ensures protection of investors, adding that the regulator remains committed to ensuring the integrity of India’s Capital markets and its orderly growth and development.

    Sebi Chief Madhabi Puri Buch and her husband Dhaval Buch have been named in the latest Hindenburg report (published 10 August 2024) in which the US-based short seller has alleged that the couple had stakes in in offshore funds linked to the Adani Group.

    The Hindenburg latest report, citing Whistleblower Documents, said that it showed “Madhabi Buch, The Current Chairperson of SEBI, And Her Husband Had Stakes In Both Obscure Offshore Funds Used In The Adani Money Siphoning Scandal.”