’If investors lose their…’: Rahul Gandhi targets SEBI’s Madhabi Puri Buch, PM Modi and Adani over Hindenburg allegations

Leader of Opposition in Lok Sabha and Congress leader Rahul Gandhi on Sunday targeted Prime Minister Narendra Modi, industrialist Gautam Adani amid Hindenburg's fresh allegations, and asked why hasn’t SEBI Chairperson Madhabi Puri Buch resigned yet.

In a post on X, Rahul Gandhi said that the integrity of SEBI, the securities regulator entrusted with safeguarding the wealth of small retail investors, has been gravely compromised by the allegations against its Chairperson.

“(Imagine) an international cricket match between India and Australia, and every single person who is watching the match and those playing the match know that the umpire is compromised. What would happen to the match? What would happen to the fairness of the match and the outcome? How would you feel as somebody who is participating in the match? This is exactly what is happening in the Indian stock market,” said Gandhi in a video message.

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Stating that honest investors across the country have pressing questions for the government, Rahul Gandhi asked, “Why hasn’t SEBI Chairperson Madhabi Puri Buch resigned yet? If investors lose their hard-earned money, who will be held accountable—PM Modi, the SEBI Chairperson, or Gautam Adani? In light of the new and very serious allegations that have surfaced, will the Supreme Court look into this matter suo moto once again?.”

The Congress leader further said that it is now abundantly clear why Prime Minister Modi is so afraid of a JPC probe and what it might reveal.

Hindenburg Research has alleged that it suspects SEBI's unwillingness to act against Adani group may be because Buch had stakes in offshore funds linked to the conglomerate.

Earlier in the day, Congress chief Mallikarjun Kharge demanded a Joint Parliamentary Committee (JPC) inquiry to investigate ‘massive scandal’.

“SEBI had previously cleared Adani, a close associate of PM Modi, before the Supreme Court following the January 2023 Hindenburg Report revelations. However, new allegations have surfaced regarding a quid-pro-quo involving the SEBI Chief,” said Kharge in a post on X.

Kharge further added, “The small & medium investors belonging to the Middle Class who invest their hard-earned money in the stock market need to be protected, as they believe in the SEBI. A Joint Parliamentary Committee (JPC) inquiry is imperative to investigate this massive scandal. Until then, concerns persist that PM Modi will continue to shield his ally, compromising India's Constitutional institutions, painstakingly built over seven decades.”

Meanwhile, SEBI asked investors to remain calm and exercise due diligence before reacting to reports such as that by US-based shortseller Hindenburg Research.

Whereas, in a detailed statement, Madhabi Puri Buch and her husband Dhaval clarified on the allegations and said, “They have chosen to attack the credibility of Sebi and attempt character assassination of the Sebi chairperson.”