The Financial Services Commission (FSC) of Mauritius has responded to allegations made by Hindenburg Research regarding offshore funds linked to Madhabi Puri Buch, the chairperson of India’s Securities and Exchange Board (SEBI).
Hindenburg Research, a US-based short seller, had alleged that Buch’s family members had invested in offshore funds that were being probed by SEBI. The research firm had claimed that this posed a conflict of interest for Buch, who is responsible for regulating the securities market in India.
However, the FSC of Mauritius has clarified that the offshore funds in question are not under investigation by SEBI. In a statement, the FSC said that it had checked with the relevant authorities in India and found no evidence to suggest that the funds were being probed.
The FSC also stated that the investments made by Buch’s family members were legitimate and had been disclosed in accordance with regulatory requirements. The regulator emphasized that it takes compliance with anti-money laundering and combating the financing of terrorism (AML/CFT) regulations seriously.
Buch has also denied any wrongdoing, saying that she had not been involved in the management of the offshore funds and had not influenced any SEBI decisions related to the funds.