Rahul Gandhi, the Leader of Opposition in Lok Sabha, on Sunday raised concerns over the fresh allegations by US short-seller Hindenburg Research against SEBI chairperson Madhabi Buch and said that the integrity of the securities regulator has been "gravely compromised".
He also said that the recent report by the US short-seller firm clearly indicates why Prime Minister Narendra Modi is afraid of a Joint Parliamentary Committee (JPC) probe against the allegations.
Hindenburg Research on Saturday night released a fresh report alleging that it suspects Sebi's unwillingness to act against the Adani Group may be because of its head Madhabi Buch had stakes in offshore funds linked to the conglomerate.
"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," Rahul Gandhi said in a video message posted on X.
The Congress leader also said that investors across the country want to know why the Sebi Chairperson has not resigned yet.
"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?," he said in the video.
"It is now abundantly clear why Prime Minister Modi is so afraid of a JPC probe and what it might reveal," Rahul Gandhi added.
Hindenburg Research accused Buch and her husband of secretly holding investments in offshore funds based in Bermuda and Mauritius. These funds are reportedly the same ones Vinod Adani, brother of Adani Group Chairman Gautam Adani, allegedly used to inflate stock prices by round-tripping funds.
BJP CALLS HINDENBURG REPORT 'CONSPIRACY'
Meanwhile, the ruling BJP has accused the Congress and other opposition parties of conspiring to create financial instability and chaos in India. The saffron party also dismissed Hindenburg's allegations against the Sebi chairperson, labeling them as an effort to undermine the credibility of the financial watchdog.
"The short-selling firm, which last year levelled serious allegations against the Adani group, is facing scrutiny from Indian probe agencies," BJP spokesperson Sudhanshu Trivedi said while speaking to news agency PTI.
"Opposition parties are echoing its allegation, and the conspiracy is now clearly visible that they want to create chaos and instability, especially in the financial sector," he added.
