SEBI Chief Denies Hindenburg Charges Calling It A Character Assassination Attempt

SEBI chief, Madhabi Puri Buch has strongly denied allegations levided against them by short seller Hindenburg as baseless. In a statement, co-signed with her husband, Dhaval Buch, the Indian market regulator's Chairman has called it a "character assassination attempt" because a enforcement action and show-cause notice was issued to the Nate Anderson-led company around a month back.

In July, the Securities and Exchange Board of India alleged that Hindenburg and Anderson have violated regulations under SEBI Act, SEBI’s Prevention of Fraudulent and Unfair Trade Practices regulations, and SEBI’s Code of Conduct for Research Analyst regulations.

In their statement, Madhabi Puri Buch and Dhaval Buch also said, "Our life and finances are an open book. All disclosures as required have already been furnished to SEBI over the years."

In the context of allegations made in the Hindenburg Report dated August 10,2024 against us, we would like to state that we strongly deny the baseless allegations and insinuations made in the report. The same are devoid of any truth. Our life and finances are an open book. All disclosures as required have already been furnished to SEBI over the years. We have no hesitation in disclosing any and all financial documents, including those that relate to the period when we were strictly private citizens, to any and every authority that may seek them. Further, in the interest of complete transparency, we would be issuing a detailed statement in due course.

It is unfortunate that Hindenburg Research against whom SEBI has taken an Enforcement action and issued a show cause notice has chosen to attempt character assassination in response to the same.

- Madhabi Puri Buch

- Dhaval Buch

Crackdown Against Shortsellers

Shortsellers like Hindenburg Research could find itself in hot water, as even the US market regulator, Securities & Exchanges Commission, has tightening its grip.

In late July, the American capital markets regulator announced action against shortselling firm Citron Capital and its head Andrew Left, for alleged ill-gotten gains.