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Jane Street Faces SEBI Crackdown for ₹36,500 Crore Market Manipulation in India

July 4, 2025, 6:58 pm

SEBI has initiated a significant crackdown against US-based trading behemoth Jane Street, alleging that it has been manipulating Indian markets to reap illegal returns. The regulator has suspended four Jane Street-associated entities from trading in India and asked them to give back ₹4,843 crore of suspected unlawful returns.

The company allegedly employed “pump-dump” strategies and expiry-day index manipulation to skew Nifty and Bank Nifty levels and generate gains on options trades. It has rebutted the allegations.

What Is Jane Street?

Jane Street is a proprietary quantitative trading firm established in 2000. Based in the US, it has more than 3,000 employees and offices across 45 countries. Its annual revenue was reported to be $20.5 billion in 2024. Its Asia presence, particularly Hong Kong, is growing very quickly.

How Jane Street is Operated in India?

During the period from January 2023 to March 2025, Jane Street made approximately ₹36,671 crore in India by trading in index options. SEBI has now marked ₹4,843 crore of this amount as illegal.

It initially caught the attention of Indians in 2023 when it sued hedge fund firm Millennium Management in a US court. That action reported Jane Street had made $1 billion in India alone on a high-frequency options trading strategy. Press reports in 2024 raised alarms about its trading conduct, and SEBI began a formal investigation.

What SEBI Found?

SEBI’s interim order accuses Jane Street of manipulating Nifty and Bank Nifty index levels on 21 expiry days between January 2023 and May 2025. The firm allegedly used two main tactics:

Morning Pump, Afternoon Dump: Jane Street bought large volumes of Bank Nifty stocks and futures in the morning, artificially pushing the index up. It then sold aggressively later, dragging the index down and creating misleading price signals.

Expiry Day Index Manipulation: On expiry days for options, it made huge trades close to closing times to distort index levels and affect options prices.

The outcome

₹44,358 crore earned from index options
₹7,208 crore in stock futures
₹191 crore lost in index futures
₹288 crore lost in cash market

All these losses notwithstanding, a net profit of ₹36,671 crore was made by Jane Street. SEBI regards ₹4,843 crore of this as illegal and has directed their disgorgement.

Action Taken by SEBI

SEBI has prohibited the following from the securities market:

JSI Investments
JSI2 Investments Pvt Ltd
Jane Street Singapore Pte Ltd
Jane Street Asia Trading

SEBI has also instructed banks to freeze withdrawals from such firms unless permitted by the regulator. The agency explained that Jane Street persisted in its trading practices even after being given a clear warning by NSE in February 2025. SEBI stated the firm demonstrated “clear disregard” for regulatory supervision and could not be regarded as a “good faith actor.”

Ex-SEBI Chief Madhabi Puri Buch Cleared by Lokpal in Hindenburg Allegations Case

May 28, 2025, 8:56 pm

Lokpal on Wednesday issued a clean chit to former SEBI chief Madhabi Puri Buch on charges of corruption against her on the basis of a Hindenburg report, declaring that the allegations were “bordering on frivolity,” PTI reported.

Allegations Deemed Baseless Against Ex-SEBI Chief

The anti-graft body said allegations against the former SEBI chief were untenable, unsubstantiated and borderline frivolous. They referred to the accusations as “presumptions and assumptions” which were not based on any verifiable data.

The Lokpal said that the complaints against Madhabi Puri Buch, including the one by TMC MP Mahua Moitra, filed last year were founded on a report by “a known short seller trader whose focus was to expose or corner Adani Group of Companies”.

Lokpal’s Official Stand

While rejecting the complaints, the six judge bench presided by Lokpal chairperson Justice A M Khanwilkar said the Hindenburg report could not be the only reason to seek action against Buch.

Buch, who became the head of the Securities and Exchange Board of India (SEBI) on March 2, 2022, submitted her resignation from office on February 28, this year following the end of her term.

In November last year, the anti-corruption ombudsman had sought Buch’s explanation in response to complaints against her.

Complainants raised five allegations against Buch during oral arguments and in their written submissions, but the Lokpal ultimately dismissed them due to lack of evidence.

Hindenburg’s Claims Refuted

In its August 10, 2024, report, Hindenburg Research claimed that Buch and her husband held interests in shadowy offshore funds involved in the claimed money-diverting scandal against the Adani Group.

Buch and her husband had dismissed the claims stating the short-seller was trying to undermine the credibility of the capital markets regulator and attempting character assassination.

Adani Group had also called the claims malicious and selective public information manipulation. Hindenburg Research founder Nathan Anderson had confirmed the closure of the firm in January this year.

Mandatory ESG disclosures under Sebi and menace of greenwashing in India

May 20, 2025, 2:05 am

As India strides toward a more sustainable and re- sponsible financial ecosys- tem, the Securities and Ex- change Board of India (SEBI) has assumed a pivotal role in integrating environmen- tal, social, and governance (ESG) considerations into corporate reporting. With the implementation of mandatory ESG disclosures under the Business Respon- sibility and Sustainability Reporting (BRSR) frame- work, SEBI aims to foster transparency, accountability, and long-term value creation in corporate India. However, these noble intentions are shadowed by the specter of greenwashing, a growing concern that threatens to undermine the credibility of the ESG movement. This article critically ex- amines the evolution, scope, and implications of SEBI’s ESG disclosure norms while scrutinizing the risks of gre- enwashing that have started to plague India’s sustain- ability narrative. It explores whether the current regu- latory approach is robust enough to curb deceptive practices or if India is merely painting its economy green with insufficient checks on corporate conduct.

Genesis of ESG Disclosures in India: From Voluntary to Mandatory

India’s journey with ESG disclosures began on a modest note in 2012 when SEBI introduced the Busi- ness Responsibility Report (BRR) for the top 100 listed entities based on market capitalization. Over the years, the scope was gradu- ally widened, culminating in the rollout of the Business Responsibility and Sus- tainability Report (BRSR) framework in May 2021. The BRSR framework marks a significant departure from its predecessors by inte- grating sustainability indi- cators with standardized metrics and requiring more granular disclosures across environmental, social, and governance pillars. Effective from FY 2023–24, ESG reporting under BRSR Core has been made man- datory for the top 1,000 listed companies by market capitalization. This move is designed to ensure com- parability, standardization, and consistency in ESG disclosures while enhanc- ing stakeholder confidence. SEBI also introduced the concept of assurance, re- quiring external validation for BRSR Core metrics to further strengthen data re- liability.

Ambitious Objectives and Regulatory Evolution

SEBI’s motivations for en- forcing mandatory ESG dis- closures are commendable. They include: Enabling investors to make informed decisions based on non-financial performance. Aligning India with global ESG standards such as GRI (Global Reporting Initiative), SASB (Sustainability Ac- counting Standards Board), and TCFD (Task Force on Climate-related Financial Disclosures). Encouraging responsible business conduct that sup- ports India’s climate goals, including net-zero emissions by 2070. In theory, these disclosures should help create a virtu- ous cycle where transpar- ent companies attract ESG- focused capital, thereby incentivizing sustainable practices. However, in prac- tice, the effectiveness of this regulation hinges not only on corporate compliance but also on the authenticity of the disclosed information— a domain increasingly mud- died by greenwashing.

Understanding Greenwashing: The New Corporate Camouflage

Greenwashing refers to the act of misleading stakehold- ers by presenting an overly positive view of a company’s environmental or social per- formance, often through selective disclosure, vague language, or outright misin- formation. In a country like India, where ESG literacy is still nascent among both investors and regulators, greenwashing poses a par- ticularly insidious threat. In recent years, several In- dian corporations have been accused—either directly or implicitly—of overstating their sustainability creden- tials. For instance: Companies have touted carbon neutrality goals while continuing to expand fossil-fuel-based operations. ESG reports often cite to- ken CSR activities or low-im- pact initiatives as major en- vironmental achievements. Some firms engage ESG rating agencies to embellish their scores without sub- stantial improvements on the ground. With India witnessing a surge in ESG-themed mu- tual funds and investor interest, greenwashing is becoming not just a risk but a systemic vulnerability.

Critical Gaps in SEBI’s ESG Framework

While SEBI’s BRSR frame- work is a step forward, it is not without its limitations, which may inadvertently enable greenwashing:

Reliance on Self-Re- ported Data Despite the assurance re- quirement for BRSR Core metrics, much of the data in the broader BRSR report remains unaudited and self- reported. This leaves ample room for manipulation or selective omission of adverse data.
Ambiguity in Material- ity Determination Companies are allowed significant discretion in de- termining what is “material” for disclosure. Without clear guidance, this can result in cherry-picking metrics that paint a favorable picture while ignoring more perti- nent or damaging issues.
Lack of Enforcement Mechanisms There are currently no stringent penalties for mis- reporting or omitting ESG information. Unlike finan- cial disclosures governed by tight accounting stan- dards and auditing norms, sustainability disclosures lack the same rigor or con- sequences.
Limited Coverage of Supply Chain Practices Many ESG risks, especially environmental and labor- related, reside deep within supply chains. The current framework offers only lim- ited oversight or incentive for companies to report on their suppliers’ ESG perfor- mance.
ESG Ratings Arbitrage The unregulated ESG rating ecosystem allows companies to engage with multiple rating providers, selectively highlighting favorable ratings while ig- noring unfavorable ones. This practice, akin to credit rating arbitrage seen during the 2008 financial crisis, erodes investor trust.

Investor Implications: Mispricing Risks and Credibility Erosion

For investors, greenwash- ing leads to misallocation of capital. ESG funds may end up investing in companies with poor real-world im- pact, undermining both eth- ical and financial returns. The illusion of sustainabil- ity also poses reputational risks, particularly for global investors who operate under stricter ESG mandates. Furthermore, unchecked greenwashing can lead to a credibility crisis. If stake- holders begin to view ESG claims with skepticism, it may reduce the pressure on companies to genuinely improve their sustainability performance, thereby de- feating the entire purpose of ESG integration.

Global Comparisons: Lessons for India

Countries like the Europe- an Union have introduced more robust legislation to combat greenwashing. The EU’s Sustainable Fi- nance Disclosure Regula- tion (SFDR) and Corporate Sustainability Reporting Directive (CSRD) mandate comprehensive ESG dis- closures with third-party audits, materiality map- ping, and clear taxonomies of sustainable activities. India, by contrast, still lacks a taxonomy akin to the EU Green Taxonomy, which categorizes economic activities based on their en- vironmental sustainability. Without such standardized definitions, companies in In- dia can freely label projects as “green” or “sustainable” without objective justifica- tion. Recommendations: Strengthening the ESG Landscape To truly realize the prom- ise of ESG disclosures and guard against greenwash- ing, India must pursue a multi-pronged regulatory overhaul:

Stronger Auditing Norms Mandate third-party au- diting for all major ESG disclosures—not just BRSR Core—using accredited sus- tainability auditors. These audits must follow globally recognized standards to ensure consistency and re- liability.
Centralized ESG Data- base Create a publicly acces- sible ESG disclosure re- pository regulated by SEBI or MCA. This can allow analysts and watchdogs to independently assess data, increasing transparency and comparability.
Green Taxonomy and Labeling Standards Develop an Indian Green Taxonomy that clearly de- fines what qualifies as an environmentally sustain- able activity. This will help eliminate ambiguity and provide a benchmark for ESG labeling.
Penalties for Mislead- ing Claims Introduce financial and le- gal penalties for companies found guilty of intentional misrepresentation in ESG disclosures. This will create deterrence and foster ac- countability.
Stakeholder and Civil Society Engagement Encourage NGOs, aca- demic institutions, and citi- zen groups to participate in ESG monitoring, much like the role of proxy advisory firms in corporate gover- nance.

Conclusion: Walking the Talk on ESG

SEBI’s mandatory ESG disclosure framework is a landmark reform in In- dia’s corporate regulatory landscape, aligning with global trends and investor demands. However, with- out stringent oversight and mechanisms to curb gre- enwashing, the framework risks becoming a box-tick- ing exercise rather than a transformative tool. As India positions itself as a climate leader on the global stage, it must ensure that its ESG ambitions are matched by integrity, enforcement, and impact. Transparency cannot be performative. Accountability cannot be optional. And sustainability cannot be superficial. In the final analysis, the success of ESG integration in India will depend not on how many companies dis- close, but on how many are willing to change. Pankaj Chhuttani, Assistant Professor, School of Law, GD Goenka University, Gurugram

BluSmart Suspends Services Following SEBI’s ₹978 Crore Loan Fraud Action

April 17, 2025, 1:50 pm

India’s electric cab-hailing platform BluSmart has unexpectedly halted its operations in key cities such as Delhi, Bengaluru, and Mumbai. The abrupt disruption comes following a Securities and Exchange Board of India (SEBI) ban on the firm’s promoters Anmol Singh Jaggi and Puneet Singh Jaggi in the high-profile Gensol Engineering Limited parent firm loan fraud case.

Thousands of BluSmart users were left confused and frustrated as the company abruptly stopped accepting ride bookings. The halt comes as the fallout from the SEBI’s interim order spreads, raising uncertainty about the future of the once-promising green mobility startup.

According to the Economic Times, BluSmart is now exploring an exit from its core ride-hailing business. The publication cited sources claiming that shareholders have approved a proposal to shift its electric fleet to Uber in the coming weeks, effectively transitioning from a direct service provider to a fleet partner.

SEBI’s Fraud Findings: A Piggy Bank for Promoters

SEBI probe found apparent money misappropriation by Jaggi brothers, co-founders of Gensol Engineering. The market regulator added that the promoters used the company as a “piggy bank,” sending funds for business use to individual extravagance and real estate.

Anmol and Puneet Singh Jaggi, BluSmart co-founders, resigned immediately after the SEBI restriction. The resignation prompted the sudden halt in BluSmart services.

The Birth of BluSmart and Gensol

The Jaggi brothers founded Gensol Engineering in 2007 as an EPC engineering, procurement, and construction company. In 2018, Anmol Jaggi partnered with Punit Goyal to start BluSmart — known at the time as Gensol Mobility Pvt — that specialized exclusively in electric vehicle mobility. It was renamed BluSmart in 2019, with Gensol venturing into EV leasing.

BluSmart expanded steadily, standing apart from traditional cab operators with its entirely electric fleet and emphasis on green travel. It had over 8,500 EVs and 5,800 charging points distributed across 50 hubs in Delhi NCR and Bengaluru by early 2025. BluSmart also had over 10,000 active driver partners working for it.

BluSmart positioned itself as India’s biggest zero-emission ride-hailing service, with more than 1.45 crore rides accomplished. It even went global by introducing a luxury electric limo service in the UAE in June 2024.

The Gensol-Governance Crisis

Trouble started when SEBI got a complaint in June 2024 against Gensol for price rigging and misusing loan proceeds. The company led by Jaggi had taken ₹978 crore from public lenders such as the Indian Renewable Energy Development Agency (IREDA) and Power Finance Corporation (PFC) between 2021 and 2024. ₹664 crore of this was earmarked for buying 6,400 EVs for BluSmart — but only 4,704 cars were purchased.

SEBI pointed out that Gensol was required to infuse the remaining 20% of the equity, so the total expense would be ₹829.86 crore. Nevertheless, approximately ₹262.13 crore is yet to be explained.

Investigations indicate that these amounts were channelled through connected firms for personal luxury. A single transaction accounted for ₹42.94 crore to DLF as payment for a luxury flat in Gurugram’s Camellias project. Other dubious spending included a ₹26 lakh golf set, costly leisure travel, credit card expenses, and high-value transfers to relatives.

SEBI also discovered that Anmol Singh Jaggi supposedly transferred ₹6.20 crore to his mom Jasminder Kaur and ₹2.98 crore to his wife Mugdha Kaur Jaggi. Puneet Singh Jaggi supposedly transferred ₹1.13 crore to his wife, Shalmali Kaur Jaggi, and ₹87.52 lakh to his mom.

Credit Ratings Downgraded

In March 2025, rating agencies ICRA and CARE downgraded Gensol’s credit rating to junk due to significant delays in debt servicing. This added pressure on the firm’s liquidity and raised concerns among its investors and partners.

The SEBI restriction not only excludes the Jaggi brothers from entry into the securities market but also freezes their positions in Gensol. SEBI has also directed a forensic audit to look into financial mismanagement in-depth. SEBI has also put on hold the proposed stock split by Gensol.

Independent director Arun Menon of Gensol resigned forthwith following the SEBI action. In his resignation letter to Anmol Singh Jaggi, Menon stated, “I would like to recall you to last year, July/August 2024, when I had attempted to contact you to obtain clarity on the company’s debt position and had also proposed a debt restructuring option to lower the cost of interest. Although you had indicated via message that you would call back, it never materialized.”

Employee Agitation and Delay in Salaries

With the deepening of the financial crisis, BluSmart workers are increasingly in the dark. Some have reported delay in their March salaries. In an in-house email, Anmol Singh Jaggi gave the reason for the delay as “cash flow constraints.”

“Owing to existing cash flow constraints, there will be a slight delay in salary processing. But rest assured that all dues will be settled within April itself,” Jaggi said.

What Lies Ahead for BluSmart?

The once-promising green mobility venture is now at a crossroads. Transitioning to a fleet partner for Uber might be the only viable route to stay afloat. However, the damage to its brand, employee morale, and investor confidence could take years to repair.

With SEBI’s inquiry still ongoing and the future of Gensol uncertain, BluSmart’s operations — and its vision for sustainable transport — remain in limbo

Why Has SEBI Banned YouTuber Asmita Patel, the ‘She-Wolf of the Stock Market’?

February 8, 2025, 7:57 pm

The Securities and Exchange Board of India (SEBI) on Saturday banned six entities, one being YouTuber and finfluencer Asmita Patel from the capital markets. As it has allegedly functioned with a non-innovative registration status investment advisory services, that action was carried out. This consists of Jitesh Jethalal Patel, Gemini Enterprise, Patel-Asmita Patel Global School of Trading Pvt Ltd- APGSOT and United Enterprises- King Traders, it adds. All such bans according to a PTI report referred from a SEBI order numbered to 129-page.

SEBI’s investigation followed a complaint from 42 investors who accused Patel and her business of unauthorized investment advisory practices. The complainants alleged that Patel managed assets worth ₹140 crore using her proprietary system. As a result, SEBI ordered her to return over ₹53 crore in fees collected from participants in her courses, claiming they were misled with inflated profit promises and coerced into paying high fees for subpar trading education.

APGSOT has also been accused of enticing students to trade specific stocks based on suggestions for buying and selling through private Telegram channels, Zoom meetings, and emails. It is alleged that students were advised to open trading accounts with ABC Ltd. A preliminary investigation has been conducted by the SEBI in between August 2019 to October 2023 in a check of these services offered on whether appropriate registrations have been met under the investment adviser IA. In all these six, amounts worth ₹53.67 crores were thus collected by it through LMIT, MPAT, Options Multiplier (OM), among various courses offered.

Madhabi Puri Buch’s Tenure Ends in 2025: Who Will Succeed Her as SEBI Chairperson?

January 27, 2025, 2:50 pm

The government has initiated the formal process of a new Chairperson to the Securities and Exchange Board of India (SEBI), as the present Chief, Madhabi Puri Buch, will complete her term on February 28, 2025. The Ministry of Finance issued an application form for this highly coveted post and the deadline to submit the applications was February 17.

The government clarified this issue in the public notice issued by the Ministry of Finance’s Department of Economic Affairs, stating that the new Sebi Chairperson will be appointed for a maximum of five-year tenure, starting from the day they join the office, or until they reach the age of 65, whichever comes first. The position offers two salary options, the equivalent pay of a Secretary to the Government of India or a consolidated monthly salary of Rs 5,62,500. The position does not include provision for a house or car.

Madhabi Puri Buch’s Legacy

Madhabi Puri Buch became India’s first female chairperson at Sebi when she took up the position on March 2, 2022. Puri Buch worked full-time at Sebi from 2017 until 2022. Throughout her stint as chairperson, she was instrumental in handling many regulatory functions and reforms at Sebi.

However, Buch’s tenure has been fraught with controversy and obstacles. One notable issue that drew attention was the Adani Group’s regulatory failures. Short-seller Hindenburg Research’s allegations, as well as subsequent criticism from political parties such as Congress, have raised concerns about Sebi’s handling of investments in Adani Group-linked offshore funds and potential violations of its code of conduct.

Another incident occurred when a group of Sebi employees accused her of creating a “toxic working environment.” However, the issue was rectified, and her term lasted.

The Sebi Chairperson Position: A Historical and Influential Appointment.

The government normally holds the position of Sebi Chairperson for three years; however, it has made exceptions in the past. U K Sinha was Sebi’s Chairperson for six years, from 2011 to 2017, and his replacement, Ajay Tyagi, has been in the role for the past five years, from 2017 to 2022.

The government’s nomination of a new Chairperson will have an impact on the regulatory body’s future direction and ensure that Sebi continues to fulfill its responsibility as India’s market watchdog.

SEBI Slaps Rs 9 Lakh Fine On Reliance Securities For Violating Market Regulations

November 29, 2024, 10:43 pm

The Securities and Exchange Board of India (SEBI) imposed a fine of ₹9 lakh on Reliance Securities for violating market norms and stock broker rules, as announced on Friday. This action followed an inspection conducted by the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) on the accounts and documents of Reliance Securities’ authorized persons (APs). The purpose of the inspection was to ensure compliance with stock broker regulations, NSEIL Capital Market (CM) guidelines, and NSE Future & Options (FO) trading norms, covering the period from April 2022 to December 2023.

Based on the inspection findings, SEBI issued a show cause notice to Reliance Securities on August 23, 2024. In its 47-page order, SEBI identified multiple violations, including inadequate systems for recording client orders, discrepancies in terminal locations, and insufficient segregation in offices shared with other brokers. The inspection also found that Reliance Securities failed to maintain the necessary order placement records for offline clients associated with its APs, Jitendra Kambad and Naitik Shah.

SEBI emphasized the requirement for brokers to maintain verifiable evidence of client orders to ensure transparency and prevent unauthorized trades. Reliance Securities admitted to the lapses but stated that corrective measures, such as deactivating terminals operated by unapproved users, had been taken. SEBI flagged these unauthorized terminals as violations of rules that require terminals to be handled only by approved users.

Also Read: Congress Targets SEBI Chief with New Allegations

The inspection also revealed issues with inadequate segregation at Reliance Securities’ AP offices. At certain locations, APs were found sharing office space and infrastructure with APs from other brokers, violating regulations. Furthermore, SEBI observed that the lack of proper oversight allowed APs to engage in unauthorized activities, including receiving payments from clients for non-broking services.

While Reliance Securities argued that some discrepancies were inadvertent and claimed to have implemented corrective actions, SEBI rejected these defenses. The regulator stated that “brokers are required to maintain compliance at all times, and corrective measures post-inspection do not negate past violations.” The actions of Reliance Securities were deemed violations of NSEL CM regulations, Stock Brokers, and NSEL FO norms.

Shankh Air Receives Approval to Launch as India’s Newest Airline

September 24, 2024, 5:51 pm

Shankh Air, India’s newest airline, has received approval from the Union Aviation Ministry to begin operations, marking a significant milestone as the first scheduled airline to originate from Uttar Pradesh. Before commencing flights, however, Shankh Air must obtain clearance from the Directorate General of Civil Aviation (DGCA). The ministry’s approval letter instructs the airline to comply with all relevant regulations, including those pertaining to Foreign Direct Investment (FDI) and the Securities and Exchange Board of India (SEBI). The No Objection Certificate (NOC) issued is valid for three years.

Operational Plans and Fleet

With operational hubs planned for Lucknow and Noida, Shankh Air intends to launch services utilizing a fleet of new-generation Boeing 737-800NG aircraft. According to the company’s website, the airline aims to connect key cities across India, focusing on both interstate and intrastate routes to serve regions with high demand yet limited direct flight options.

Competitive Landscape in Indian Aviation

The entry of Shankh Air comes amid intensifying competition in the Indian aviation sector. Air India, the largest airline by market share, has made a comeback in August after experiencing a decline in July, increasing its market share by 40 basis points. Meanwhile, SpiceJet and Akasa Air reported declines of 80 and 20 basis points, respectively.

Passenger Traffic Trends

Data released by the DGCA on September 13 revealed that domestic air traffic in August grew by 5.7% year-over-year, reaching 1.31 crore passengers. However, traffic numbers saw a decline in August compared to May 2024, which recorded 1.38 crore passengers, with June and July also witnessing lower passenger counts.

SEBI Chairperson Madhabi Puri Buch and Husband Call Allegations ‘False and Malicious’

September 13, 2024, 4:19 pm

In response to recent allegations, SEBI Chairperson Madhabi Puri Buch and her husband Dhaval Buch have categorically denied all claims against them, describing them as “false, incorrect, malicious, and motivated.” The couple released a detailed six-page joint statement on Friday, addressing the allegations surrounding their Income Tax Returns.

SEBI Chairperson Madhabi Puri Buch Denies Financial Misconduct Allegations
The controversy, centered around the couple’s income and tax filings, has been termed baseless by Madhabi and Dhaval Buch. They clarified that all matters have been fully disclosed in their tax returns, with taxes duly paid. They further accused the individuals making these allegations of obtaining their tax returns illegally, violating both their right to privacy and the provisions of the Income Tax Act.

“This is a clear breach of our fundamental right to privacy. The facts in our returns have been twisted to create a false narrative,” the couple stated, stressing that the pattern of making allegations in installments appears to be an intentional strategy to keep the issue alive without pursuing the truth.

Allegations Aimed at ‘Maligning Individuals and Institutions’
The couple expressed their frustration over the repeated allegations and questioned the accusers’ motives. “If the goal was to reveal the truth, why are the allegations not brought forward all at once? The strategy of releasing them in parts suggests a different, malicious intent,” they noted, hinting at possible future accusations as part of an ongoing campaign to malign their reputations.

Madhabi Puri Buch and Dhaval Buch Stand by Their Integrity
In the joint statement, both Madhabi and Dhaval Buch emphasised their long-standing commitment to integrity and transparency in their professional lives. The couple made it clear that they would continue to fight these allegations and may take appropriate legal action if necessary.

“Despite the clear intent to distort facts and create falsehoods, we are confident in dismantling these baseless claims while reserving our right to legal remedy,” they stated. They also noted that the periodic nature of these accusations makes it clear that the sole intention is to distort facts and build a misleading narrative.

Congress Leader Pawan Khera’s Allegations: SEBI Chief’s Income from ICICI Bank Denied
On September 2, Congress leader Pawan Khera raised questions about Madhabi Puri Buch’s alleged income from ICICI Bank and ICICI Prudential while serving as a full-time member and later Chairperson of SEBI. In response, ICICI Bank clarified that neither the bank nor its group companies had paid any salary or granted stock options to Madhabi after her retirement, aside from her entitled retirement benefits.

Congress’s Wockhardt Allegation: Baseless and Misleading
On September 6, Congress also alleged a conflict of interest, claiming Madhabi Puri Buch had received rental income from an affiliated company of Wockhardt. The pharmaceutical company swiftly denied the allegations, stating that these claims were “completely baseless and misleading.”

Also read:

Hindenburg Raises New Questions; Responds to SEBI Chairperson Madhabi Puri Buch

Anil Ambani Banned By SEBI, Fined Rs 25 Crore Over RHFL Fraud

Paytm’s Vijay Shekhar Sharma Faces SEBI Notice Over IPO Norm Violations

Allegations Against Dhaval Buch’s Consulting Roles Rejected
The statement also addressed allegations related to Dhaval Buch’s consulting work with Agora Advisory in India and Agora Partners in Singapore. The couple rejected any conflict of interest, citing Dhaval Buch’s 35-year career and strong professional reputation.

“Dhaval’s appointments are based on his qualifications and merit, not because of his relationship with SEBI’s Chairperson. He has been an Executive Director at Hindustan Unilever and was the Global Head of Procurement, responsible for USD 40 billion annually,” the statement read.

Class 12 Student Leads Initiative to Educate Rural Women in Financial Literacy

September 5, 2024, 5:05 pm

Financial literacy, the ability to understand and effectively manage money, remains a challenge in India, especially for rural women. A recent study by SEBI revealed that only 27% of India’s population is financially literate, with rural women being underrepresented due to cultural and societal barriers that limit their participation in financial decisions.

To address this gap, Vidhi Miglani, a Class 12 student from DPS Kaithal, Haryana, has launched DhanSarthi, a digital platform aimed at empowering rural women with financial knowledge. Speaking about her initiative, Miglani said, “Through DhanSarthi, we have made a real impact on the ground. So far, we have helped over 5,000 women across four states gain financial knowledge and access banking services.”

The platform has conducted 175 awareness drives, partnered with banks, and helped women open bank accounts, enroll in government schemes like Sukanya Samriddhi Yojana, and form microfinance groups. Additionally, DhanSarthi has developed a peer-education model, creating a network of 200 community leaders who continue to promote financial education.

Miglani acknowledged the challenges of overcoming cultural and social barriers, which initially deterred women from participating in workshops. “Many women were hesitant to discuss finances. Another challenge was the language barrier and the lack of trust in the banking system due to bad experiences with incomplete documentation for government schemes,” she said.

By building trust and offering practical solutions, DhanSarthi has successfully addressed these issues. Miglani hopes to expand the initiative nationwide, stating, “Educating a woman creates a ripple effect, as each empowered woman goes on to empower others.”

Anil Ambani Banned By SEBI, Fined Rs 25 Crore Over RHFL Fraud

August 26, 2024, 1:22 pm

The Securities and Exchange Board of India (SEBI) has taken significant action against Anil Ambani, Chairman of the Anil Dhirubhai Ambani Group (ADAG), banning him and 24 other individuals from the securities market for five years. This decision stems from a major fraud case involving Reliance Home Finance Ltd (RHFL), where funds were allegedly diverted, leading to substantial losses for stakeholders.

The RHFL Case: A Deep Dive

RHFL, a non-banking financial company (NBFC) specializing in housing loans and property finance, came under SEBI’s scrutiny after multiple complaints surfaced about possible fund siphoning. Reliance Capital Ltd (RCL), which owned a 47.91% stake in RHFL, was the major promoter, with Ambani serving as its promoter and non-executive director during the financial year 2018-19.

SEBI’s investigation revealed a sharp rise in loans disbursed by RHFL, increasing from Rs 3,742.60 crore in 2017-18 to a staggering Rs 8,670.80 crore in 2018-19. A significant portion of these loans was allocated to financially weak borrowers, many of whom had negative net worth and no collateral was secured against these loans.

Key Findings and SEBI’s Observations

SEBI’s detailed 222-page order highlighted the disbursement of 97 General Purpose Working Capital (GPC) loans, totaling Rs 8,470.65 crore, to 45 borrower entities during FY2018-19. Notably, a majority of these loans were approved and disbursed on the same day, raising red flags about the process followed.

Despite an RHFL board directive on February 11, 2019, to cease further GPC loans, the company continued disbursing such loans, allegedly under Ambani’s approval as Group Head. The SEBI investigation found that 14 loans worth Rs 1,472.16 crore were approved by Ambani in just over one and a half months after the board’s instruction.

SEBI’s order highlighted several irregularities, including the company’s projected low Expected Credit Loss (ECL) for FY2018-19, despite half of RHFL’s assets being tied to GPC loans given to dubious entities. The investigation concluded that Ambani and the others involved perpetrated a fraudulent scheme, causing significant financial erosion to RHFL.

Anil Ambani’s Response

In response to SEBI’s order, a spokesperson for Anil Ambani stated that he is exploring legal options. The spokesperson also mentioned that Ambani had resigned from the boards of Reliance Infrastructure and Reliance Power following SEBI’s interim order in February 2022 and has been compliant with the order for over two years. Ambani is currently reviewing SEBI’s final order and will take appropriate legal action.

This landmark case underscores SEBI’s commitment to maintaining the integrity of the financial markets and serves as a stern warning against fraudulent activities.

SEBI Bans Anil Ambani And 24 Other For 5 Years For Financial Fraud

August 23, 2024, 12:19 pm

Markets regulator SEBI has imposed a five-year ban on industrialist Anil Ambani and 24 others, including key former officials of Reliance Home Finance Ltd (RHFL), due to their involvement in a large-scale fund diversion scheme. The action comes after an extensive investigation into fraudulent activities that led to significant financial losses.

Five-Year Ban and Heavy Fines

SEBI has barred Anil Ambani from participating in the securities market, including serving as a director or Key Managerial Personnel (KMP) in any listed company or registered intermediary, for a period of five years. In addition, Ambani has been fined Rs 25 crore. Reliance Home Finance Ltd has also been banned from the securities market for six months and fined Rs 6 lakh.

Fraudulent Scheme and Governance Failures

The investigation revealed that Ambani, with the assistance of RHFL’s top executives, orchestrated a fraudulent scheme to siphon funds from RHFL by disguising them as loans to entities connected to him. Despite directives from RHFL’s Board of Directors to halt such practices, the management ignored these orders, reflecting a severe failure of governance.

SEBI’s report indicates that the funds were funneled through companies with negligible financial standing, and many of these borrowers were closely linked to the promoters of RHFL. The fraudulent scheme contributed to RHFL’s inability to meet its debt obligations, leading to its resolution under the RBI Framework and substantial losses for public shareholders.

Impact on Shareholders and Financial Penalties

The impact on RHFL’s shareholders has been severe. The company’s share price dropped dramatically from Rs 59.60 in March 2018 to Rs 0.75 in March 2020 as the fraud was uncovered. Currently, over 900,000 shareholders are facing significant losses.

SEBI has also imposed fines on the 24 restrained entities involved. Key figures such as Amit Bapna, Ravindra Sudhalkar, and Pinkesh R Shah, former officials at RHFL, have been fined Rs 27 crore, Rs 26 crore, and Rs 21 crore respectively. Other entities involved, including Reliance Unicorn Enterprises and Reliance Big Entertainment Private Ltd, face fines of Rs 25 crore each for their roles in the fund diversion scheme.

Ongoing Investigation and Interim Measures

In February 2022, SEBI had issued an interim order prohibiting Anil Ambani, Amit Bapna, Ravindra Sudhalkar, and Pinkesh R Shah from the securities market until further notice. The final order confirms and extends these restrictions, reflecting SEBI’s ongoing commitment to addressing financial misconduct and protecting investors.

Hindenburg Raises New Questions; Responds to SEBI Chairperson Madhabi Puri Buch

August 12, 2024, 7:39 am

In a series of tweets, Hindenburg Research has responded to SEBI Chairperson Madhabi Puri Buch and her husband, Dhaval Buch, regarding allegations made on August 10, 2024. The Buchs had defended their investment in a fund made in 2015, prior to Madhabi Buch joining SEBI in 2017, stating the decision was influenced by Anil Ahuja, a childhood friend of Dhaval Buch and a seasoned investor. They emphasized that the fund had no investments in Adani Group securities.

Hindenburg countered by highlighting significant admissions in the Buchs’ response, including confirmation of investment in a Bermuda/Mauritius fund allegedly linked to funds siphoned by Vinod Adani. They also pointed out that the fund was managed by Ahuja, who had ties to Adani Group, suggesting a potential conflict of interest.

Further, Hindenburg claimed that while Madhabi Buch stated that her consulting companies became dormant after her SEBI appointment, her husband took over these businesses in 2019, with Madhabi still owning 99% of Agora Advisory Limited in India. The Singaporean entity, Agora Partners Singapore, was wholly owned by her until March 2022, when ownership was transferred to her husband shortly after she became SEBI Chairperson.

The Singaporean consulting entity she set up doesn’t publicly report its financials like revenue or profit so it’s impossible to see how much money this entity has earned during her time at SEBI.

The Indian entity, still 99% owned by the SEBI Chairperson, has generated INR… pic.twitter.com/NXQkOsSkgD

— Hindenburg Research (@HindenburgRes) August 11, 2024

This is especially important given whistleblower documents showing that Buch used her personal email to do business using her husband’s name while serving as a Whole Time Member of SEBI.

In 2017, weeks ahead of her appointment as SEBI Whole Time Member, she ensured the accounts… pic.twitter.com/zeGWoUDC5A

— Hindenburg Research (@HindenburgRes) August 11, 2024

The research firm also noted that Agora Advisory Limited generated INR 23.985 million (about USD 312,000) in revenue during the financial years 2022-2024 while Madhabi Buch was SEBI Chairperson. They raised concerns about possible undisclosed business activities, referencing whistleblower documents alleging use of personal emails for business transactions under her husband’s name.

Additionally, Hindenburg alleged that before her SEBI appointment, Madhabi Buch ensured that accounts connected to Adani were registered under her husband’s name. They cited a private email suggesting she redeemed stakes in funds through her husband. The firm has called for a full, transparent investigation and disclosure of all consulting clients and business dealings related to both Buchs.

SEBI Calls For Calm After Hindenburg Report, Emphasizes ‘Short Positions’ Disclaimer For Investors

August 11, 2024, 8:11 pm

In view of the recent Hindenburg Research report, India’s market regulator, SEBI, has called on investors to exercise due diligence and remain calm. The SEBI said that the report contained a disclaimer wherein Hindenburg Research had taken short positions in securities discussed therein.

The latest charges by Hindenburg Research claim that SEBI chief Madhabi Puri Buch had conflicts of interest, which impeded an effective investigation into manipulation and fraud allegations against the Adani Group.

SEBI warned, “Investors should keep calm and exercise due diligence before reacting to such reports. Investors may also like to take note of the disclaimer in the report that states that readers should assume that Hindenburg Research may have short positions in the securities covered in the report.”.

A report from Hindenburg on August 10 levelled allegations against SEBI of inaction against the Adani Group despite allegations over financial irregularities. It had questioned the SEBI’s decision to issue a show-cause notice on June 27, 2024 to Hindenburg for alleged violations of Indian securities laws. The report had accused that recent amendments to the SEBI (REIT) Regulations, 2014, have favoured a particular multinational financial conglomerate.

SEBI dismissed these allegations and said it had done proper investigation into the Adani Group. It also cited the January 3 order of the apex court in which the Supreme Court had said that out of 24, the regulator did indeed conclude 22 investigations into the Adani Group. As on March 2024, one more is completed and the last one is nearing completion.

On the show-cause notice to Hindenburg Research, SEBI explained that “It may be noted that pursuant to the completion of investigations, Sebi initiates the process of enforcement proceedings which are quasi-judicial in nature. This comprises issuance of show-cause notice and granting opportunity for hearing, which culminates in issuance of speaking order,” said Sebi.

Hinderburg reports not credible, opposition wants to create chaos in country: BJP

August 11, 2024, 3:00 pm

After the opposition criticized the government over allegations made by U.S. short seller Hindenburg Research against SEBI Chairperson Madhabi Buch and her husband, BJP leader Rajeev Chandrasekhar dismissed the report as a “conspiracy” aimed at destabilizing India’s financial system. He stated that the report lacked credibility and accused the Congress party of seeking foreign assistance to create chaos in the country by attacking the independent regulator, SEBI.

Chandrasekhar highlighted a pattern in Congress’s strategy over the past decade, alleging that the party has been using “politics of lies” and now collaborating with external forces to discredit India’s economy and financial institutions. He emphasized that the claims against SEBI were baseless and a deliberate attempt to undermine India’s financial stability.

The Bharatiya Janata Party (BJP) leader and former Union Minister Rajeev Chandrasekhar said, “There seems to be a pattern where the Congress over the last ten years has adopted a strategy of politics of lies and is now seeking foreign help to destabilize our financial system and to create chaos in the country by attacking the independent regulator SEBI and by casting aspersions on the chairman of SEBI. This is a conspiracy and some forces are working together to destabilize India’s economy and discredit our regulator, stock markets and financial system. It is something that we should never allow as our country is on the path of expansion and growth. Using these innuendos and lies against an independent regulator is a crime. Nothing in the report is credible. This is a conspiracy and deliberate attack on India’s economy.”

The BJP leader also said that there is a certain plan behind such reports and said, “These are a set of innuendos and guesswork that are being tied together with a few grains of truth. There is a certain plan behind this. India’s financial system today is the strongest in the world. Even when banks and stock markets are crashing in the USA, Indian banks are strong. Indian financial sector has been rebuilt over the last ten years by PM Modi. Our economy is the fastest growing in the world.”

The BJP leader and Spokesperson Sudhanshu Trivedi intimated the Congress’s involvement behind the Hindenburg report and said such foreign reports come only when the Parliament session commences.

Sudhanshu Trivedi said, “For the past few years, whenever the Parliament session commences, a foreign report gets released. BBC documentary was released just before the Parliament session. The Hindenburg report came in January just before the Parliament session. Sometimes there is a report on religious freedom or sometimes there is a report on farmers from foreign countries or sometimes Greta Thunberg’s statement. All these sequences happen during the Parliament session. Today, when the opposition is carrying forward such reports, then it is suspected that the opposition has some connections with the abroad to create instability and anarchy during every Parliament session of India.”

Hitting out at the Congress for pleading with foreign entities to interfere in the internal matters of India, Trivedi said, “We are talking about this seriously because the recent elections in India were only elections when a foreigner, George Soros said I have invested 1 billion dollars just to dismiss the Modi government. If there is any incident, then there comes a report from abroad. I can’t understand why Rahul Gandhi criticises such things in foreign countries only. Congress and opposition leaders plead with foreign leaders to interfere in the internal matters of India. They want to create economic chaos in India through confusion, whether it is a public sector company or a private sector company.”

Adding further into it, Trivedi stated, “They are the same people who one year ago said that LIC, SBI, and HAL are over. But the fact is, in the last financial year LIC profited for Rs 17,000 crores while that of SBI is Rs 21,000 crores which is an all-time high. Now they are attacking SEBI.”

The BJP Spokesperson further alleged that it’s the Congress party that has always supported foreign entities whether it is Union Carbide, Bofors or Augusta Westland.

“What do they want to achieve through such allegations? Why does Congress always stand with foreign companies for the past 30-40 years? Why did it stand with Union Carbide? Why did they help Union Carbide’s Anderson to flee from India? I want to ask who was standing with companies like Bofors, Augusta Westland, BBC, and Hindenburg. Rahul Gandhi has worked with a British company, ” he said.

Questioning the opposition about their affection for foreign companies and reports, Trivedi asserted, “Today, I want to ask the opposition what affection they have for foreign entities and reports. I want to ask “Videsh ke sansthano se yeh konsa yaraana hai, ki Bharat ke har ek arthik sansthan ke Vishay ke upar aapka nishana hai?”

Meanwhile, hours, after the US-based short seller shot off fresh allegations against Adani Group, the spokesperson of the conglomerate, said, “The latest allegations by Hindenburg Research are malicious, mischievous, and manipulative selections of publicly available information to arrive at pre-determined conclusions for “personal profiteering with wanton disregard for facts and the law.”

Earlier in the day, shortly after US-based short seller Hindenburg Research on August 10 alleged that SEBI Chairperson Madhabi Buch and her husband had stakes in “both the obscure offshore entities used in the Adani money siphoning scandal,” the SEBI Chairperson and her husband issued a joint statement rejecting the allegations.

Madhabi Puri Buch and her husband accused Hindenburg Research, against whom SEBI has taken enforcement action, of character assassination.

In the joint statement released to the media, they said, “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. 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.”

Earlier on Saturday, US short seller Hindenburg had alleged, “We had previously noted Adani’s total confidence in continuing to operate without the risk of serious regulatory intervention, suggesting that this may be explained through Adani’s relationship with SEBI Chairperson, Madhabi Buch.”

“What we hadn’t realized: the current SEBI Chairperson and her husband, Dhaval Buch, had hidden stakes in the exact same obscure offshore Bermuda and Mauritius funds, found in the same complex nested structure, used by Vinod Adani,” the report by the US hedge firm said.

Hindenburg Research said it has made the new allegations based on documents provided by a whistleblower and investigations carried out by other entities.

In January 2023, Hindenburg published a report accusing the Adani Group of financial irregularities, leading to a significant drop in the company’s stock price. The group at the time had rubbished these claims.

The Hindenburg report alleged stock manipulation and fraud by the conglomerate. The case is related to the allegations (part of a report by Hindenburg Research) that Adani had inflated its share prices. After these allegations were published, there was a sharp fall in the shares of various Adani group companies’ stocks.

In January 2024, the Supreme Court refused to transfer the probe into the allegations of stock price manipulation by the Adani group to an SIT and had directed market regulator SEBI to complete its probe into two pending cases within three months.

Earlier this year the SC also dismissed a plea seeking to review the verdict that had sought investigation by the market watchdog SEBI in the Adani-Hindenburg case.

Adani Group Responds To Latest Hindenburg Allegations: ‘Malicious, Mischievous Attack’

August 11, 2024, 1:25 pm

The Adani Group has fiercely rebuked recent claims made by American short-seller Hindenburg Research, dismissing them as “malicious, mischievous, and manipulative.” The conglomerate, which has been under intense scrutiny since Hindenburg’s earlier reports, responded on Sunday to allegations that it had financial links with SEBI Chairperson Madhabi Buch and her husband, Dhaval Buch.

The Adani Group condemned the accusations as a calculated effort to harm its reputation, stating, “The latest allegations by Hindenburg are malicious, mischievous, and manipulative selections of publicly available information to arrive at pre-determined conclusions for personal profiteering with wanton disregard for facts and the law.” The company firmly rejected these claims, labeling them as recycled and discredited assertions that have already been dismissed by the Supreme Court earlier this year.

Addressing concerns about its financial transparency, the Adani Group emphasized that its overseas holding structure is entirely transparent, with all necessary disclosures made in various public documents. The conglomerate also clarified that it has no commercial ties to the SEBI Chairperson or her husband, further accusing Hindenburg of engaging in a deliberate smear campaign.

“The Adani Group has absolutely no commercial relationship with the individuals or matters mentioned in this calculated deliberate effort to malign our standing. We remain steadfastly committed to transparency and compliance with all legal and regulatory requirements,” the company stated, while also branding Hindenburg as a “discredited short-seller” with little regard for Indian laws.

In response to the allegations, Madhabi Buch and Dhaval Buch issued a joint statement asserting their innocence and transparency. They expressed their willingness to disclose any financial documents to the relevant authorities and condemned Hindenburg’s actions as an attempt at character assassination in retaliation for enforcement actions taken against the firm by SEBI.

“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,” the Buchs stated. They also confirmed that a detailed statement would be issued soon to address the situation further.

Hindenburg’s report claimed that the Buchs had concealed stakes in obscure offshore funds associated with the Adani Group, raising further questions about the firm’s transparency. However, the Adani Group and the Buchs have vehemently denied these allegations, underscoring their commitment to full transparency and legal compliance.

As tensions continue to rise, this latest exchange highlights the ongoing friction between the Adani Group and Hindenburg Research, with both sides standing firm in their positions amidst the ongoing investigations.

SEBI Head And Husband Reject Hindenburg Claims: ‘Our Life and Finances Are..’

August 11, 2024, 11:30 am

Madhabi Puri Buch, the chairperson of the Securities and Exchange Board of India (SEBI), along with her husband Dhaval Buch, has vehemently denied recent allegations made by Hindenburg Research, a US-based short-seller. The accusations, outlined in a report released on August 10, 2024, claim that the Buchs were involved with offshore entities implicated in the Adani money siphoning scandal.

In a joint statement issued shortly after the report’s release, the Buchs labeled the allegations as “baseless” and “devoid of any truth.” They emphasized their commitment to transparency, stating, “Our life and finances are an open book. We have consistently provided all required disclosures to SEBI over the years and are prepared to share any additional documents with relevant authorities.”

The couple criticized Hindenburg Research for what they described as an attempt at character assassination in retaliation for regulatory actions taken against the firm. They expressed their dismay at the timing of the allegations, given that SEBI has already issued a show-cause notice to Hindenburg in response to its prior reports.

Hindenburg Research’s report alleges that Madhabi and Dhaval Buch held hidden stakes in offshore funds based in Bermuda and Mauritius, part of a network used by Vinod Adani. Additionally, it claims that the Buchs opened an account with IPE Plus Fund 1 in Singapore in June 2015, declaring a net worth of $10 million.

The allegations come in the wake of Hindenburg’s earlier report, published in January 2023, which accused the Adani Group of financial misconduct. The revelations led to a sharp decline in the Adani Group’s stock value, which fell by over $100 billion in market capitalization. The Adani Group has strongly denied these allegations.

In their statement, the Buchs reiterated their openness to scrutiny and pledged to issue a more detailed response in due course.

Congress And TMC Question SEBI’s Integrity Over Adani Probe By Hindenburg

August 11, 2024, 11:13 am

Drawing on the Latin phrase “Quis Custodiet Ipsos Custodes” from the Roman poet Juvenal’s ‘Satires,’ Congress party questioned SEBI’s unusual hesitation to probe the Adani MegaScam. This criticism came on Saturday after a new report from US short-seller Hindenburg Research made allegations against SEBI chairperson Madhabi Puri Buch and her husband.

Congress General Secretary (communications) Jairam Ramesh, on Saturday, took to X to post “Quis Custodiet Ipsos Custodes” in the party’s statement “on the latest Hindenburg revelations.”
The US-based firm on Saturday, alleged that Buch and her husband had a stake in “both the obscure offshore entities used in the Adani money siphoning scandal.” Congress has demanded that the government “act immediately to eliminate all conflicts of interest in the SEBI investigation of Adani.” The party argued that “the seeming complicity of the highest officials of the land can only be resolved by setting up a JPC [Joint Parliamentary Committee] to investigate.” Trinamool Congress leader Mahua Moitra also took to X, posting, “In true Adani style – even SEBI Chairman is investor in his group. Crony Capitalism at its finest. @CBiHeadquarters&@Dir_ED – will you be filing POCA and PMLA cases or not?”

After releasing a teaser on the morning of August 10, suggesting a major revelation concerning India, Hindenburg published a report by the end of the day that stated, “We had previously noted Adani’s total confidence in continuing to operate without the risk of serious regulatory intervention, suggesting that this may be explained through Adani’s relationship with SEBI Chairperson, Madhabi Buch.” The report further stated, “What we hadn’t realized: the current SEBI Chairperson and her husband, Dhaval Buch, had hidden stakes in the exact same obscure offshore Bermuda and Mauritius funds, found in the same complex nested structure, used by Vinod Adani.” Hindenburg Research posted a link for the entire report on its X account. “New from us,” read the tweet, adding “Whistleblower Documents Reveal SEBI’s Chairperson Had Stake In Obscure Offshore Entities Used In Adani Money Siphoning Scandal.”

Hindenburg Research asserted that the new allegations were based on documents supplied by a whistleblower and investigations conducted by other parties. The report stated, “Madhabi Buch and her husband Dhaval Buch first appear to have opened their account with IPE Plus Fund 1 on June 5, 2015 in Singapore, per whistleblower documents. A declaration of funds, signed by a principal at IIFL states that the source of the investment is “salary” and the couple’s net worth is estimated at USD 10 million.”

In January 2023, Hindenburg Research released a report accusing the Adani Group of financial misconduct, which caused a substantial decline in the company’s stock price. At that time, the Adani Group dismissed these allegations. The earlier Hindenburg report had claimed that the conglomerate engaged in stock manipulation and fraud, specifically alleging that Adani had inflated its share prices. Following the publication of these allegations, the stocks of various Adani group companies fell sharply, with losses reportedly exceeding USD 100 billion. The January report from the US short seller came just two days before Adani Enterprises was set to launch a USD 2.5 billion follow-up public offering. Adani Group has consistently denied all the claims made in the Hindenburg Research reports.

Who is Dhaval Buch, Husband of SEBI Chairperson Mentioned in Hindenburg Report?

August 11, 2024, 12:53 am

US-based short-seller Hindenburg Research has made serious allegations against Madhabi Puri Buch, chairperson of the Securities Exchange Board of India (SEBI), and her husband, Dhaval Buch. The firm claims that the Buchs were involved in an offshore fund that received substantial investments from Vinod Adani, the brother of Gautam Adani. This report raises questions about SEBI’s impartiality and potential conflicts of interest.

According to Hindenburg’s report, on March 22, 2017, Dhaval Buch, ahead of Madhabi Puri Buch’s appointment as SEBI chairperson, contacted Trident Trust, a fund administrator in Mauritius. Buch requested to be the sole person authorized to operate the accounts related to their investment in the Global Dynamic Opportunities Fund (GDOF). The timing and nature of this request suggest an effort to distance these assets from his wife’s name prior to her high-profile appointment.

Who is Dhaval Buch?

Dhaval Buch is a senior advisor at Blackstone and Alvarez & Marsal and serves as a non-executive director on the Board of Gildan, as per his LinkedIn profile. An alumnus of Indian Institute of Technology, Delhi (IIT-D), Buch graduated in mechanical engineering in 1984. He previously served as executive director and Chief Procurement Officer at Unilever, and has extensive experience in procurement and supply chain management.

The whistleblower documents referenced by Hindenburg indicate that Dhaval Buch’s net worth is $10 million and that he was employed at Unilever during the alleged investment period in Vinod Adani’s firms. The report also alleges that while Buch was a senior advisor at Blackstone, the firm played a role in sponsoring Mindspace and Nexus Select Trust, which were among the REITs to receive SEBI approval for public IPOs.

SEBI Chief Linked To Offshore Entities In Adani Money Scandal, Claims Hindenburg Report

August 10, 2024, 11:00 pm

Hindenburg Research, the firm that previously criticized the Adani Group, has leveled new allegations against Madhabi Puri Buch, the Chairperson of the Securities and Exchange Board of India (SEBI). According to the firm, Buch and her husband were involved with “obscure offshore entities” connected to the Adani money siphoning scandal.

Hindenburg cites whistleblower documents indicating that Buch and her spouse held stakes in an offshore fund where Vinod Adani, Gautam Adani’s brother, invested a significant amount. Gautam Adani is the chairman of the Adani Group.

Buch did not respond to Reuters’ attempts to reach her via call and WhatsApp message.

Hindenburg’s earlier report in January 2023 accused the Adani Group of fraudulent activities, leading to a $150 billion drop in market value. This report prompted SEBI to launch an investigation into the group’s offshore investments and financial practices.

Recently, SEBI issued a show-cause notice to Hindenburg, accusing the firm of collaborating with a US hedge fund to profit from its report using non-public information.

Details from the report:

Hindenburg’s initial report, published 18 months ago, provided evidence of the Adani Group’s involvement in what was described as “the largest con in corporate history.” The report revealed a network of offshore shell companies, primarily in Mauritius, used for undisclosed transactions and stock manipulation.

Despite this evidence and over 40 independent media investigations supporting the initial report, SEBI has yet to take visible action against the Adani Group.

Hindenburg’s response to SEBI’s July 2024 show-cause notice questioned the regulator’s lack of interest in pursuing the parties behind the offshore shell empire involved in undisclosed transactions and stock manipulation.

The “IPE Plus Fund” is a small offshore fund based in Mauritius, created by an Adani director through India Infoline (IIFL), a wealth management firm linked to the Wirecard scandal. Vinod Adani reportedly used this fund to invest in Indian markets with funds allegedly siphoned from inflated power equipment invoicing to the Adani Group.

According to Hindenburg, Madhabi Buch and her husband Dhaval Buch were connected to the same offshore Bermuda and Mauritius funds used by Vinod Adani, with their accounts opening on June 5, 2015, in Singapore, as per the whistleblower documents.

(This story is developing.)

CJI D.Y. Chandrachud Highlights Role of SEBI and SAT Amidst Stock Market Surge

July 5, 2024, 10:46 am

Chief Justice of India, D.Y. Chandrachud, emphasized the critical role of regulatory bodies such as SEBI and the Securities Appellate Tribunal (SAT) in ensuring a stable and predictable investment environment during periods of significant stock market activity. Speaking at the inauguration of the new appellate tribunal premises in Mumbai, the Chief Justice underscored the importance of these institutions in maintaining market stability, especially during times of market surges.

Chandrachud highlighted that as the stock market experiences significant growth, the responsibilities of SEBI and SAT become increasingly vital. These bodies must balance celebrating market successes while ensuring that the fundamental stability of the market is preserved.

He likened the SAT to a referee in the competitive world of finance, ensuring that all stakeholders adhere to the rules. The tribunal must keep pace with the evolving financial landscape and maintain a commitment to fair adjudication and procedural safeguards, which are essential for maintaining market integrity and investor confidence.

The Chief Justice noted that the recent milestone of the BSE crossing 80,000 points is a significant achievement, indicating India’s entry into a higher economic domain. Such milestones underscore the importance of regulatory authorities in navigating the complexities of the market. He pointed out that it is crucial for all involved, including lawyers and judges, to maintain their composure and contribute to the regulatory framework of the securities market.

Chandrachud also emphasized that investor confidence in the protection of their investments and effective dispute resolution mechanisms can lead to increased investments in the country’s markets. This influx of investment can drive economic growth, job creation, and capital formation. He advocated for additional benches of the SAT and improved infrastructure to manage the increasing caseload effectively.

Furthermore, Chandrachud addressed the rapid growth in market participants and financial transactions, which could lead to more disputes regarding regulatory compliance, market conduct, corporate governance, and shareholder issues. He also stressed the need to focus on technological advancements and reimagine access to justice in the digital era, highlighting the importance of technology in the modern regulatory framework.

By highlighting these points, the Chief Justice underscored the essential roles that regulatory bodies and judicial institutions play in fostering a stable investment environment and supporting economic growth.

SEBI Proposes Stricter Rules On Stock Derivatives Trading On Individual Stocks

June 10, 2024, 9:33 pm

India’s Securities and Exchange Board (SEBI) has proposed new, stricter regulations on trading individual stock derivatives (futures and options) to mitigate the risks of market manipulation following a significant surge in options trading. According to a Reuters report, SEBI’s proposal comes in response to the explosive growth in the derivatives market, especially driven by retail investors.

In April, sources informed Reuters that India’s leading financial regulators planned to form a committee to assess the stability risks arising from this surge in derivatives markets. In a recent research note, financial services firm IIFL indicated that 25 of the 182 stocks currently eligible for futures and options contracts could be deemed ineligible if SEBI’s new rules are enforced.

Over the past five years, options trading in India has skyrocketed, with the notional value of index options traded doubling in 2023-24 to $907.09 trillion from the previous year, as reported by the National Stock Exchange (NSE).

A discussion paper published on the SEBI website on Sunday suggested that derivatives contracts on individual stocks should meet specific liquidity and trading interest criteria, a requirement currently applied only to index contracts. SEBI emphasized the necessity of sufficient market depth and appropriate position limits to prevent market manipulation, increased volatility, and to protect investors.

To be eligible for futures and options (F&O) trading under the proposed rules, a stock must be traded on 75% of trading days, though the period was not specified. Additionally, 15% of active derivatives traders should have traded the stock; the average premium daily turnover should be Rs.150 crore; the average daily turnover should range between Rs.500 crore and Rs.1500 crore; and the maximum number of open F&O contracts for the underlying stock should be between Rs.1250 crore and Rs.1750 crore, with no specific time periods mentioned.

This regulatory move follows efforts by India’s top stock exchanges to attract investors with new products and reduced fees, intensifying competition for a share of the rapidly growing derivatives market and driving a surge in trading activity. In 2023, 78% of the 108 billion options contracts traded globally were on Indian exchanges, according to data from the Futures Industry Association. Retail investors account for 35% of derivative trading in the country.

SEBI: Demat & Mutual Fund Accounts Safe Without Nomination Details

June 10, 2024, 6:36 pm

SEBI’s recent announcement states that Demat accounts and mutual fund portfolios will remain unaffected and will not be frozen due to the non-submission of nominations.

The decision to make these changes was taken after considering representations received from market participants. This move aims to enhance ease of compliance and investor convenience, as stated in a circular by the market’s regulator.

Security holders can also receive dividend, interest, or redemption payment, as well as lodge grievances or avail any service request, even if the ‘choice of nomination’ is not submitted, SEBI wrote. Additionally, SEBI mentioned that payments, including dividend, interest, or redemption payments, which are currently withheld due to missing nomination details, shall be processed accordingly.

However, despite this relaxation, the selection of a nominee remains compulsory for fresh investors, with the exception being Demat Accounts and Mutual Fund portfolios held jointly. SEBI has mandated that depositories and asset management companies (AMCs) must regularly reach out to customers via email or SMS every two weeks to collect nomination particulars.

SEBI, the Securities and Exchange Board of India, had announced an extension of the deadline until June 30, 2024, allowing mutual fund investors ample time to complete their nominations. This decision was made in December of the previous year, providing investors with a clear timeline to ensure their nominations were processed smoothly.

SEBI Introduce ‘Saa₹thi’ Mobile App for Investor Education in Personal Finance

June 4, 2024, 7:02 pm

SEBI, the capital markets regulator, has introduced the ‘Saa₹thi’ mobile app focused on personal finance for investors. This user-friendly app aims to simplify complex financial concepts and provide analytics through financial calculators on topics like KYC processes, mutual funds, ETFs, stock trading, investor grievance redressal, and online dispute resolution (ODR). It also offers educational videos to assist investors in their financial planning.

During the launch, Ananth Narayan G, Whole Time Member of SEBI, emphasized the app’s role as an unbiased and trusted source of investment information, particularly beneficial for young investors starting their financial journey. The app’s content is dynamic and regularly updated to reflect market changes, with SEBI welcoming public feedback to improve the app’s effectiveness.

The ‘Saa₹thi’ app is available for download on both Google Play Store and the iOS app store, providing investors with essential insights into the securities market. Additionally, SEBI has implemented initiatives like the SCORES Complaints Redress System (SCORES) to protect investors and enhance their understanding of investment complexities. This web-based platform enables investors to file grievances against SEBI-regulated entities, ensuring transparency and accountability in the market.

Techie Brothers Lose Rs 2 Crore: SEBI Warns of Online Stock Trading Scams

June 1, 2024, 5:00 pm

A 53-year-old man from Pune, along with his brother, recently fell victim to an online trading scam, resulting in a loss of Rs 2.45 crore. The FIR filed by the police reveals that cybercriminals added the complainant and his brother to a WhatsApp group, promising them significant profits through online share trading. However, investigations later revealed that the promised profits were fictitious, and the trading platform was merely a screen software susceptible to manipulation.

In light of the growing number of investment-related scams across the country, the Securities and Exchange Board of India (SEBI) has issued a warning to investors. SEBI cautions investors about fraudulent investment schemes and apps that offer unrealistic returns, urging them to exercise caution while engaging in online trading.

The modus operandi of these scammers involves impersonating legitimate registered intermediaries and conducting fraudulent activities through social media platforms like Facebook and WhatsApp. They entice unsuspecting investors with promises of guaranteed high returns. Once investors believe they are dealing with reputable intermediaries, they download the app and invest through it.

However, these investments do not actually occur on the Stock Exchanges or Depositories as claimed. When investors attempt to withdraw substantial securities, the application becomes nonfunctional.

SEBI advises investors to verify the details of registered Depository Participants (DPs) of Central Depository Services Limited (CDSL) on the official website.

The advisory from SEBI warns investors against falling for fraudulent trading activities conducted by impersonators posing as prominent SEBI registered financial institutions. These impersonators use social media platforms and messaging apps to carry out their schemes, making enticing promises of guaranteed high returns. Investors are urged to avoid such schemes and apps offering unrealistic returns and to verify the legitimacy of DPs through the provided link. Additionally, investors are encouraged to utilize online services offered by legitimate DPs for demat accounts and seek online closure facilities if available.

SEBI Revises Minimum Staggered Delivery Period For Commodity Futures Contracts

May 25, 2024, 12:55 pm

The Securities and Exchange Board of India (SEBI) has announced a modification in the minimum duration for the staggered delivery period of commodity futures contracts. This adjustment is part of SEBI’s ongoing efforts to improve the efficiency and reliability of the commodity derivatives market.

According to a circular issued by SEBI on May 24, a paragraph in the ‘Master Circular for Commodity Derivatives Segment’ dated August 4, 2023, has been revised. This change is based on feedback from market participants and discussions held by SEBI’s Commodity Derivatives Advisory Committee (CDAC).

The minimum duration for the staggered delivery period of commodity futures contracts is now set to be at least three working days. Previously, this duration was not explicitly specified, leading to inconsistent practices across the segment. This change will take effect from July 1 and will apply to all contracts with staggered delivery scheduled after this date.

SEBI has instructed all recognized stock exchanges and clearing corporations to inform their members of these new provisions and to ensure that the information is prominently displayed on their websites. The circular states, “This circular is issued under the authority of Section 11(1) of the Securities and Exchange Board of India Act, 1992.” This section authorizes SEBI to take measures to protect investor interests, promote development, and regulate the securities market.

The full text of the circular is available on SEBI’s official website under the categories “Circulars” and “Info for Commodity Derivatives.”

SC issues notice on guidelines for Digital KYC process for acid attack survivors

May 17, 2024, 3:02 pm

The Supreme Court issued a notice to the Centre and other relevant authorities on Friday regarding a plea to establish guidelines for alternative methods of conducting Digital KYC for acid attack survivors with permanent eye disfigurement or burns. The court acknowledged the importance of the issue.

The bench, led by Chief Justice of India DY Chandrachud and comprising justices JB Pardiwala and Manoj Misra, stated that the matter would be addressed in July.

The plea, filed by nine acid attack survivors including Pragya Prasun, requests that authorities develop guidelines to ensure the Digital KYC process is accessible and inclusive for all disabled individuals, particularly those with eye disfigurements from acid attacks.

The petitioners highlighted the numerous challenges they face in accessing basic financial and telecommunication services due to their inability to complete the Digital KYC process, which often requires blinking.

“The following accessibility barriers were faced by the Petitioners herein due to their inability to blink and as such complete their Digital KYC/e-KYC process while attempting to avail basic goods and services which are essential to lead a life with dignity, autonomy and equality, and participate in day-to-day life,” the petition stated.

The petition also called for public and private establishments conducting Digital KYC to implement the proposed guidelines and develop organizational policies that provide alternative methods for acid attack survivors to complete their Digital KYC process.

Additionally, the petition sought a directive for the Central Government to clarify the “live photograph” requirement in the RBI – KYC Master Directions, 2016. It suggested that this requirement should include alternative criteria such as facial feature movements or voice recognition.

The petition also requested the RBI to amend or create suitable alternatives for the “live photo” requirement to enable acid attack survivors and similarly affected individuals to complete the KYC process independently.

Furthermore, the petition urged the RBI, SEBI, and TRAI to instruct all regulated public and private organizations, including banks and financial institutions, to adopt offline or physical KYC procedures for acid attack survivors. It also called for these organizations to be sensitized to actively assist these individuals in accessing banking, telecommunication, and other financial services.

Government warns of SBI Fake Bank and Stock trading app scam

April 22, 2024, 12:25 pm

In the previous year, the government had warned the account holders of SBI against the fake SMS scam. Claiming to be from SBI’s channel, it asked the recipients to renew their PAN card. If they didn’t, they threatened to block their mobile app SBI YONO account.

The PIB (govt.fact check department) too warned the recipients about such SMS messages. Taking to twitter (now x), it revealed that through the SMS, they posed as official SBI and asked users to update their PAN card otherwise their SBI YONO account would be blocked. If not complied with the SMS.

Through social media, they clarified that all these messages are fake.

In addition, both android & iPhone users were given warnings by the government about these dangerous apps. Via Cyberdost, (handle of Ministry of Home Affairs). However, the android consumers were specifically warned.

Why Android Users?

The government through their online handle had warned about the android consumers of its fake counterpart of Union Bank which goes by the name “Union-Rewards.apk”.

This scam app impersonates the official version of the Android App and offers the consumers rewards.

The tweet reads “Protect yourself from fake malicious android applications. #CyberSafeIndia #CyberAware #StayCyberWise #I4C #MHA #fraud #newsfeed,”

Protect yourself from fake malicious android applications.#CyberSafeIndia #CyberAware #StayCyberWise #I4C #MHA #fraud #newsfeed pic.twitter.com/jMYU42bJZo

— Cyber Dost (@Cyberdost) April 20, 2024

Fake Stock Trading App Scam

In addition to the government app scam, stock trading apps have become a huge nuisance recently. Which causes huge financial losses to the innocent citizens. It has specifically warned iPhone users about it.

As per the government cyber cell, it has warned of this fake stock trading app Group-S. As per the information provided, its publisher is Chu Chi Quoc Huy.

Other apps include INSECG, CHS-SES, SAAI, SEQUOIA and GOOMI.

These applications lack registration with the Securities and Exchange Board of India (SEBI). According to the modus operandi, they enroll users and prompt them to engage in stock trading according to recommendations from fraudulent sources. The amount for the shares are deposited in the accounts to buy shares. Which is specified by the fraudsters. Bogus profits are then showcased in the digital wallet, resulting in victims ultimately losing their money.

Keeping the severe situation into account, SEBI has cautioned the investors too about these social media messages & applications which claim that they facilitate stock market access via FPIs or FIIs sanctioned by SEBI.

Supreme Court rules no regulatory failure by SEBI in Adani-Hindenburg row

January 3, 2024, 11:33 am

The Supreme Court has ruled that the Securities and Exchange Board of India (SEBI) did not exhibit any regulatory failure in the Adani-Hindenburg controversy. The judgment emphasizes that reliance on unverified press reports is insufficient and cannot serve as a foundation for regulatory lapses.

The case, extensively covered by @DebayonRoy, involved a dispute between SEBI and Hindenburg Research over the regulatory body’s handling of complaints against Adani Group. The verdict is seen as a victory for Gautam Adani, who expressed gratitude for the support and affirmed a commitment to India’s growth story.

[BREAKING] No regulatory failure by SEBI in Adani-Hindenburg row, reliance on unverified press reports cannot stand: Supreme Court

report by @DebayonRoy #SupremeCourt #AdaniHindenburgCase #AdaniGroup https://t.co/gTMjvveOns

— Bar & Bench (@barandbench) January 3, 2024

Gautam Adani took to Twitter, stating, “The Hon’ble Supreme Court’s judgment shows that truth has prevailed. Satyameva Jayate. I am grateful to those who stood by us. Our humble contribution to India’s growth story will continue. Jai Hind.”

The Hon’ble Supreme Court’s judgement shows that:

Truth has prevailed.
Satyameva Jayate.

I am grateful to those who stood by us.

Our humble contribution to India’s growth story will continue.

Jai Hind.

— Gautam Adani (@gautam_adani) January 3, 2024

The apex court’s decision underscores the importance of relying on verified and substantiated information in regulatory matters, emphasizing the need for a robust foundation for allegations. The judgment is likely to have implications for how regulatory bodies handle complaints based on media reports, reinforcing the significance of thorough investigations.

As this legal chapter concludes, the focus may now shift to ensuring the transparency and accuracy of information in the financial market, with regulatory bodies potentially refining their approaches to handling complaints and allegations.