'Hindenburg report a move to destroy India's markets': Govt
Hindenburg report as a calculated move to destroy India's primary and secondary market by attacking the regulator's credibility through the dredging up of a non-issue.
Madhabi Puri Buch, chairperson of the Securities and Exchange Board of India (Sebi), made the investments mentioned in the Hindenburg report before 2017 in a private capacity and these had been disclosed, according to people with knowledge of the matter.
Early on Sunday, Buch said that these were «baseless allegations» and devoid of any truth, underscoring this point.
«All disclosures as required have already been furnished to Sebi over the years,» the Sebi chairperson said, adding that a detailed statement would be issued in due course.
'Character assassination'
«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,» she added.
Hindenburg's argument would seem to suggest that private individuals can be penalised for investment decisions made decades ago if they subsequently went on to hold public positions, said one of the persons cited above.
«Such a precedent would have a chilling effect on private sector talent ever taking public positions to serve the nation,» the person added.
US-based short seller Hindenburg Research alleged late on Saturday that Buch and husband Dhaval Buch had investments in obscure offshore entities linked to the Adani Group that were the subject of a Sebi investigation,
