'23 Investigations Into Adani Complete, Have Disclosure Framework': SEBI Denies Hindenburg's Allegations Against Chairperson

In response to Hindenburg Research's 10 August report, the Securities and Exchange Board of India (SEBI) urged the investors to remain calm and elaborated on its efforts to investigate Adani Group on earlier allegations.

SEBI highlights the Supreme Court's January order noting that SEBI had completed 22 out of 24 investigations into the Adani group, after which one more investigation has been completed and one is close to completion.

Hindenburg alleged that SEBI Chairperson Madhabi Puri Buch and her husband have stakes in obscure offshore entities linked to the Adani Group, raising questions about potential conflicts of interest.

SEBI explained that with more than 100 summons, around 1,100 letters and emails issued, more than 100 communications made and more than 300 documents containing around 12,000 pages examined, the organisation has done its due diligence to investigate the Adani Group.

On Hindenburg's allegation that a show cause notice issued to it by SEBI violates securities laws, the organisation stated that the due process of the law was followed and the proceedings are going on.

On allegations that the implementation of the SEBI (REIT) Regulations resulted in significant benefit to the Adani Group, SEBI clarified that the SEBI (REIT) Regulations 2014 has been amended from time to time.

SEBI explained the process of making amendments which includes consultation, consideration and deliberation and as a measure of transparency, the agenda papers for Board meetings and outcomes of Board discussions are also published on the SEBI website.

"The claim that promoting REITs and SM REITs among various other asset classes by SEBI was only for benefitting one large multinational financial conglomerate is inappropriate," SEBI concludes by mentioning that it works for development of Indian securities markets.

It emphasised that SEBI has adequate internal mechanisms for addressing issues relating to conflict of interest, which include disclosure framework and provision for recusal and thus the Chairperson has also disclosed and recused herself from relevant matters.