Lokpal Clears SEBI Chief Madhabi Puri Buch in Hindenburg Case
In a major development, the Lokpal of India has officially cleared Securities and Exchange Board of India (SEBI) Chairperson Madhabi Puri Buch of all allegations related to the Adani-Hindenburg affair. The clean chit comes after a thorough examination of the complaint submitted by Supreme Court advocate Vishal Tiwari, who had accused the SEBI chief of inaction and failure to protect investor interests following the release of the Hindenburg Research report on the Adani Group.
“The complaint has been disposed of as it was found to be devoid of merit,” said an official source familiar with the matter. The source added that the Lokpal had conducted a preliminary inquiry and found no grounds to proceed against Buch.
The allegations centered on claims that SEBI, under Buch’s leadership, delayed key probes and did not act swiftly after the U.S.-based short seller Hindenburg Research accused the Adani Group of stock manipulation and accounting fraud. These claims triggered significant market volatility and investor concerns last year.
SEBI Investigation Timeline Scrutinized
Tiwari’s complaint highlighted what he described as “deliberate delay” in SEBI’s investigation into the Adani Group. He had alleged that such delays amounted to criminal misconduct by a public servant, which should fall within the jurisdiction of the Lokpal. The complaint also included references to the findings and directives of a Supreme Court-appointed expert committee, which had examined SEBI’s conduct in the matter.
However, the Lokpal, after reviewing the documents and arguments, concluded that there was no material evidence of wrongdoing or deliberate suppression of facts by Buch or the regulatory body she heads.
Clean Chit Signals Institutional Backing
“The outcome validates SEBI’s handling of the case and reinforces confidence in the regulator’s independence,” a legal analyst observed. The ruling comes at a time when investor sentiment and institutional credibility are under scrutiny, especially concerning large corporate entities and their dealings.
Madhabi Puri Buch, who became SEBI’s first woman Chairperson in 2022, has faced unprecedented challenges, including calls for reform in disclosure practices and regulatory timelines in light of the Hindenburg allegations. With the Lokpal’s decision, she is expected to continue leading SEBI’s reform agenda without further legal overhang.
Political and Market Implications
The verdict also has wider political implications. Opposition parties had used the Hindenburg report and SEBI’s actions as rallying points to question the government’s ties with large conglomerates. With the Lokpal closing the case, political criticism may face a setback, though calls for regulatory overhaul are expected to continue.
This decision also strengthens SEBI’s credibility at a time when global investors are closely monitoring India’s regulatory mechanisms amid increased foreign capital inflow and corporate scrutiny.
