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The Congress party in India has escalated its criticism of the Securities and Exchange Board of India (SEBI) over the prolonged investigation into allegations of financial irregularities by the Adani Group. The party's general secretary for communications, Jairam Ramesh, has accused SEBI of having “a lot to explain” about its handling of the case, highlighting the delay in concluding the investigation, which was initially expected to be completed within two months but remains unresolved 18 months later. Ramesh's comments underscore the Congress's persistent accusations of the government providing undue favors to the Adani Group, alleging financial irregularities and stock manipulation within the conglomerate led by industrialist Gautam Adani.
The Congress's concerns stem from a recent media report outlining the actions of two Mauritius-based foreign portfolio investors (FPIs) named in a January 2023 report by Hindenburg Research concerning the Adani Group. These FPIs are seeking urgent relief from SEBI's newly implemented foreign investor regulations before the September 9 deadline. Ramesh asserts that these FPIs were complicit in the Adani Group's alleged attempts to accumulate benami stakes in its companies by circumventing SEBI regulations. Furthermore, he criticizes SEBI's initial decision to remove the requirement for identifying the “ultimate beneficial owner” of offshore funds, a decision that was later reversed in June 2023 due to public pressure.
Adding fuel to the fire, fresh allegations from Hindenburg Research against SEBI Chairperson Madhabi Buch have further fueled the controversy. Hindenburg accuses Buch and her husband of holding stakes in offshore funds implicated in the Adani scandal. Although both Buch and her husband have vehemently denied these accusations, the claims have raised significant questions about potential conflicts of interest and have further undermined public trust in SEBI's ability to conduct a fair and impartial investigation. The Adani Group, however, has consistently maintained its compliance with all legal and disclosure obligations, vehemently denying any wrongdoing.
Source: Congress slams SEBI over delayed Adani investigation, questions regulator’s accountability