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Published: August 12, 2024
Updated: August 12, 2024

Market Regulator SEBI Tells Investors to Remain Calm Amid Hindenburg Report

SEBI Responds to Hindenburg Allegations

The Securities and Exchange Board of India (SEBI) has urged investors to remain calm and exercise due diligence before reacting to the latest report from Hindenburg Research. The US-based short-seller accused SEBI Chairperson Madhabi Puri Buch of conflicts of interest, which allegedly hindered a thorough investigation into allegations of manipulation and fraud at the Adani Group.

Investigation into Adani Group

SEBI clarified that it has completed 23 out of 24 investigations into the Adani Group, with one remaining investigation close to completion. The regulator has issued over 100 summons, 1,100 letters, and emails seeking information, and has examined over 300 documents containing 12,000 pages.

Amendments to REIT Regulations

Hindenburg Research alleged that SEBI's amendments to the REIT Regulations were made to benefit a large multinational financial conglomerate. SEBI refuted these claims, stating that all regulatory changes follow a robust consultation process involving industry stakeholders and the public.

Disclosure by SEBI Chairperson

SEBI emphasized that Chairperson Madhabi Puri Buch has made relevant disclosures regarding her holdings and transfers of securities. She has also recused herself in matters involving potential conflicts of interest.

AMFI Criticizes Hindenburg Research

The Association of Mutual Funds in India (AMFI) criticized Hindenburg Research for attempting to create a trust deficit in the market and undermine the contributions of SEBI Chairperson Madhabi Buch. AMFI warned that such allegations could pose unnecessary obstacles to India's growth as the world's fastest-growing economy.

SEBI has assured investors that the regulator is committed to maintaining market integrity and transparency. Investors are advised to remain calm and make informed decisions based on credible sources. The allegations made by Hindenburg Research have been refuted by SEBI, and the regulator has reiterated its commitment to promoting the democratization of markets and financialization of household savings.