Lokpal Questions The Credibility Of Hindenburg Report On Pleas Seeking Investigation Against SEBI Chairperson

India's anti-corruption authority, Lokpal of India, has questioned the credibility of Hindenburg Report, based on which two complaints were filed with the authority against the Sebi Chairperson, Madhabi Puri-Buch. Lokpal in its observation said it has not been persuaded that a preliminary enquiry is needed against Sebi Chairperson and the issue raised based on the Hindenburg Research has been already addressed by the Supreme Court of India and dismissed.

The anti-corruption body was established under the Lokpal and Lokayuktas Act 2013 to inquire and investigate into allegations of corruption against public functionaries.

Lokpal in its observations has asked the complainants to explain how the current allegations attracts the anti-corruption act. It has sought from the complainants how allegations against the Sebi Chairperson would constitute corruption under Prevention of Corruption Act, 1988 and state provisions of the Act under which these allegations should be considered.

The anti-corruption authority also stated Supreme Court's refused to interfere in the investigations, which it considers fair and comprehensive, by the market regulator and its refusal to interfere in Sebi's administrative control over entities under the FPI Regulations could come in the way of its enquiry.

The authority also observed since the fulcrum of the allegations against the Sebi Chairperson is linked to the investigation undertaken by the market regulator against the short-seller Hindenburg Research, the authority has asked the complainants to explain why it is different or mutually exclusive cause of action.

It also sought the efforts made by the complainants to verify the authenticity and credibility of the claims made in the August report of Hindenburg Research.

Moreover, the authority wants the complainants to explain whether investments made by the person prior to holding a public office comes under Prevention of Corruption Act and state whether a non-disclosure would come under the purview of the Corruption Act or the authority.

The authority in its order has redacted all names of individuals and entities before making the order public.