Sebi meet today amid row over Madhabi Puri Buch: Why investors are on edge

The Securities and Exchange Board of India (Sebi) board is scheduled to convene today (September 30) for a meeting. This is the first meeting since US short-seller Hindenburg levelled allegations against Sebi chairperson Madhabi Puri Buch. The Sebi board has four whole-time members and three part-time members.

Hindenburg alleged that Madhabi Puri Buch and her husband Dhaval Buch had investments in offshore funds that were controlled by Vinod Adani, brother of Gautam Adani. The short seller earlier accused that the Adani Group manipulated funds and inflated stock prices of its listed companies in India. The regulator probed allegations against the conglomerate and gave it a clean chit.

Madhabi Puri Buch and her husband have denied all the allegations saying that they have complied with all the disclosures of Sebi. The meeting also comes after around 500 employees of Sebi wrote to the finance ministry saying there was immense pressure at the regulator, resulting in a “stressful and toxic work environment”.

Sebi said that the claims of unprofessional work culture were misplaced and some “outside elements” instigated the employee. The regulator later on withdrew its comments saying that the issues will be addressed “amicably and internally”.