Congress threatens nationwide stir if JPC probe on SEBI row not launched

Stepping up its attack against the Narendra Modi government over Hindenburg Research's allegations against SEBI (Securities and Exchange Board of India) chairperson Madhabi Puri Buch, the Congress on Monday threatened to launch a nationwide protest if its demand for a Joint Parliamentary Committee (JPC) probe into the matter is not accepted.

Hindenburg Research, an investment research firm that uses activist short-selling to expose corporate fraud and malfeasance, alleged on Saturday that the SEBI chairperson and her husband Dhaval Buch had undisclosed investments in obscure offshore funds in Bermuda and Mauritius, the same entities allegedly used by Vinod Adani — elder brother of Adani Group chairman Gautam Adani — to round-trip funds and inflate stock prices.

Congress MP and general-secretary (organisation) K.C. Venugopal described the allegations as "very serious" and accused the prime minister of supporting the Adani Group and its chairman Gautam Adani on the matter.

He pointed out that the Supreme Court's verdict in this case was based on SEBI's report, but the SEBI chairperson and her husband had not disclosed to the apex court their investments in the offshore entities linked to Adani.

"It's a situation where the fence itself is eating the crop; even the Supreme Court was misled," the Congress leader said. "The Supreme Court should take up the case on its own."

He also said the Congress would examine the legal aspects of approaching the top court on this matter. "The prime minister's silence on the matter amounts to destruction of credibility," Venugopal told reporters at Kerala's Thiruvananthapuram airport.

He accused the Union government of trying to divert people's attention from the matter by using the Enforcement Directorate against Lok Sabha leader of the Opposition Rahul Gandhi. "Don't try to threaten Rahul Gandhi with an ED notice. We will strongly oppose such diversionary tactics," the Alappuzha MP said.

Venugopal said, "This is the most serious issue in the country", and warned that if their demand for a JPC probe is not accepted, they would go ahead with a strong protest.

"Hindenburg's report is shocking the nation. The SEBI chairperson, responsible for regulating the stock market, ensuring its credibility and taking action against scams, allegedly has investments in such shell companies (associated with Adani Group). How does the government view this news? It's astonishing that, despite such a serious allegation, Buch remains in the same position," he said.

He said tens of thousands of people's shares are in crisis. "Why is the government afraid of a Joint Parliamentary Committee? Doesn't it imply that there is something to hide and be afraid of?" Venugopal asked, adding that the Congress and INDIA bloc will move towards a nationwide protest if the Centre refuses to constitute the JPC.

In a joint statement on Sunday, Buch and her husband responded to Hindenburg's exposé saying the investments were made in 2015, well before her appointment as a full-time member of SEBI in 2017 and hr subsequent elevation as chairperson in March 2022, in their capacity as "private citizens living in Singapore". These funds became "dormant" on her appointment in SEBI, they claimed.