Brinda Karat Calls for SEBI Chairperson’s Resignation Over Adani Group Investigation

New Delhi, India, August 12: CPI(M) leader Brinda Karat has called for the immediate resignation of SEBI Chairperson Madhabi Buch, citing the Hindenburg report’s revelations of a ‘massive scam.’ Karat argued that if the head of SEBI (Securities and Exchange Board of India) is under suspicion, it undermines the credibility of the entire investigation into the Adani Group.

Karat accused the central government of protecting the SEBI Chairperson, suggesting that this protection indicates the government’s involvement in the alleged scam. She stated, “The facts and details brought to light in the Hindenburg report are an expose of a massive scam. If the SEBI Chairperson is under suspicion, it proves that the entire probe on Adani has no credibility. It is the responsibility of the Government to take resignation of SEBI Chairperson immediately if she is not resigning on her own.”

The CPI(M) leader also echoed the growing demand among political parties for the formation of a Joint Parliamentary Committee (JPC) to ensure a fair and impartial investigation into the matter. “The Government is attempting to protect her because the Government is involved. So, we have said that it is the demand of all political parties to constitute a JPC for a fair probe,” Karat said.

Responding to SEBI’s statement on the ongoing investigations into certain financial transactions of the Adani Group, Congress General Secretary Jairam Ramesh reiterated the opposition’s demand for a Joint Parliamentary Committee (JPC) probe into the matter. Ramesh stated, “In its August 11, 2024 statement on the ongoing investigations into certain financial transactions of the Adani Group, SEBI has tried to project an image of hyperactivity, stating that it has issued 100 summons, sent 1,100 letters and emails, and examined 300 documents comprising 12,000 pages. This may seem exhaustive, but it diverts attention from the core issues at hand. Actions matter, not activities.”

He also referenced a letter he wrote on February 14, 2023, to the SEBI Chairperson urging the agency to fulfil its role as the steward of India’s financial markets, noting that he never received a reply. His statement follows allegations by Hindenburg Research that SEBI Chairperson Madhabi Buch and her husband had stakes in obscure offshore funds tied to the alleged Adani money siphoning scandal.

However, SEBI Chairperson Madhabi Buch and her husband, in a press release, rejected the allegations by Hindenburg as baseless and malicious, asserting that the accusations were an attempt at “character assassination.” In a joint statement to the media, they said, “Our life and finances are an open book. All required disclosures have already been furnished to SEBI over the years. We have no hesitation in disclosing any and all financial documents, including those from the period when we were private citizens, to any authority that may seek them. It is unfortunate that Hindenburg Research, against whom SEBI has taken enforcement action and issued a show cause notice, has chosen to attempt character assassination in response.”