Hindenburg Research, a US-based short seller, has raised questions about the dealings of the spouse of Madhabi Puri Buch, the chairperson of the Securities and Exchange Board of India (SEBI). The research firm has alleged that Buch’s husband, Sudarshan Puri, has been involved in questionable transactions, potentially posing a conflict of interest for the SEBI chief.
Hindenburg’s report claims that Sudarshan Puri has been trading in the shares of companies regulated by SEBI, including some that have been under investigation by the market regulator. The report also alleges that Puri has been involved in dealings with individuals and entities that have been accused of market manipulation.
The report has sparked concerns about the potential for conflicts of interest and the integrity of the SEBI chief. Buch has been at the helm of SEBI since March 2022 and has been instrumental in shaping the regulator’s policies.
SEBI has responded to the allegations, stating that Buch has disclosed all necessary information about her husband’s dealings and that there is no conflict of interest. However, Hindenburg’s report has raised questions about the adequacy of these disclosures and the need for greater transparency.
The allegations come at a time when SEBI is facing criticism for its handling of several high-profile cases, including the Adani-Hindenburg saga. The market regulator has been accused of being too slow to act and too soft on corporate malfeasance.
The controversy has sparked a debate about the need for greater transparency and accountability in regulatory bodies like SEBI. It remains to be seen how the situation will unfold and what action SEBI will take to address the concerns raised by Hindenburg’s report.