India’s markets regulator asks investors to remain calm on Hindenburg’s allegations against the chief

MUMBAI (Reuters) – India’s markets regulator on Sunday urged investors to remain calm and exercise due diligence before reacting to reports such as that of U.S.-based short seller Hindenburg Research.

Hindenburg alleged on Saturday that Securities and Exchange Board of India (SEBI) chief Madhabi Puri Buch previously held investments in offshore funds also used by the Adani Group.

The regulator said the allegations made by Hindenburg against the Adani group were properly investigated by SEBI and 23 out of 24 investigations were completed by March 2024. One remaining investigation is close to completion.

“As a matter of policy, SEBI refrains from commenting on any ongoing investigation and enforcement matter,” SEBI said.

Defending its boss, the regulator said Buch had made relevant required disclosures regarding securities holdings and their transfers and had recused himself from matters involving potential conflicts of interest.

Buch in a separate statement said her investment in offshore funds mentioned in the Hindenburg report predates her appointment at SEBI by two years.

Indian equity markets have been booming, attracting large funds from domestic institutional and retail investors.

The benchmark Nifty has gained 11.87% in the last six months.

A mutual fund lobby on Sunday called the Hindenburg report an attempt to create sensation by connecting random events from the past.

The Mutual Fund Association of India has stated that India’s financial system is safe, transparent, designed to foster growth and innovation with high integrity.

(Reporting by Jayshree P Upadhyay; Editing by Toby Chopra)