CPI(M) Leader Demands SEBI Chair's Resignation Over Hindenburg Report Allegations

CPI(M) leader Brinda Karat has called for the resignation of SEBI Chairperson Madhabi Buch, citing the Hindenburg report's allegations as evidence of a large-scale scam. Karat and other political leaders demand a Joint Parliamentary Committee to ensure a fair probe into the Adani Group investigation.

CPI(M) leader Brinda Karat has called for the immediate resignation of SEBI Chairperson Madhabi Buch, citing the Hindenburg report as evidence of a 'massive scam.' Karat argued that if the head of SEBI (Securities and Exchange Board of India) is under suspicion, it undermines the credibility of the entire investigation into the Adani Group.

She further accused the central government of shielding the SEBI Chairperson, suggesting that this protection indicates government involvement in the alleged scam. 'The facts and details brought to light in the Hindenburg report are an expose of a massive scam. If the SEBI Chairperson is under suspicion, it proves that the entire probe on Adani has no credibility. It is the responsibility of the Government to ensure the resignation of the SEBI Chairperson immediately if she does not step down on her own,' Karat emphasized.

The CPI(M) leader also echoed the growing demand among political parties for the formation of a Joint Parliamentary Committee (JPC) to ensure a fair and impartial investigation into the matter. 'The Government is attempting to protect her because it is involved. That is why we all demand the constitution of a JPC for a fair probe,' Karat stated. Meanwhile, Congress General Secretary Jairam Ramesh reiterated the opposition's demand for a JPC probe. 'SEBI's August 11, 2024 statement on the ongoing investigations into certain financial transactions of the Adani Group may appear exhaustive but diverts attention from core issues,' Ramesh noted in a letter posted on X. He also referenced an earlier letter to SEBI that had gone unanswered.

Hindenburg Research has alleged that SEBI Chairperson Buch and her husband held stakes in offshore funds tied to the purported Adani scandal. However, in a press release, Buch and her husband rejected these allegations as baseless and malicious, describing them as an attempt at 'character assassination.' They asserted, 'Our life and finances are an open book. All required disclosures have been furnished to SEBI over the years. We are willing to disclose any financial documents to any authority that may seek them.' Buch also pointed out that SEBI had taken enforcement action against Hindenburg Research, suggesting this could be a retaliatory move.

(With inputs from agencies.)