Hindenburg row: Left parties demand JPC probe

Left parties on Sunday demanded that a joint parliamentary committee (JPC) should be constituted to probe the allegations levelled by US short-seller Hindenburg Research against SEBI chairperson Madhabi Buch.

In a statement, the Communist Party of India (Marxist) said the Hindenburg Research, which had earlier exposed the stock price manipulation by the Adani group of companies, has now levelled serious charges against Security and Exchange Board of India (SEBI) chairperson Madhabi Buch and her husband.

The party said the Hindenburg report has cited documents to show that Buch and her husband held stakes in the same offshore funds which were utilized by Vinod Adani to invest in Adani companies.

"Given these serious charges against the head of the regulatory authority, it is necessary that the Chairperson step aside till a proper investigation is conducted," the CPI(M) said.

"The Polit Bureau of the CPI(M) reiterates its demand that the entire affair of the stock market manipulation of shares of the Adani group be probed by setting up a Joint Parliamentary Committee," it said.

CPI(M) general secretary Sitaram Yechury, in a post on X, said, "The latest Hindenburg revelations have accused the regulator, SEBI, and that its chairperson herself is part of the manipulation. She must immediately quit and a Joint Parliamentary Committee to be constituted for the investigation."

CPI general secretary D Raja said whether a JPC is constituted or not, Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman should speak on the issue.

"Hindenburg revelation has thoroughly exposed the BJP government headed by Mr Modi. How Mr Modi and his government are backing the corporate houses, particularly Adani's, to loot the wealth of the nation," Raja said.

"SEBI is considered to be a market regulator. But SEBI chief has conflict of interest... It is a very serious moral question whether she can continue to be chief. She has to think over," he said.

"As far as our party is concerned, she has to step down... Then what is the response of government?" he said.

"There is a need for high level appropriate investigation. Some people have demanded already JPC. Whether there is JPC or not, the situation cannot be allowed to continue like this. And Finance Minister, Prime Minister should spell out what they are going to do with this situation," Raja said.

CPI(M) leader Hannan Mollah called it an "old story", and alleged that the SEBI did not probe the earlier allegations properly.

"You know this is an old story. When first this issue was exposed, the whole country was shattered as how the share market manipulation is helping Modi's very close friend Adani and family, and they are engaged in manipulation of shares. At that time government was 'hell-bent' to defend the Adani family, that it's false, report is not correct," Mollah said.

He said the Supreme Court put faith in SEBI.

"But now it's exposed that SEBI chairperson has some complicity with that...SEBI did not enquire properly because of SEBI chairperson's complicity... Now government or SEBI cannot bring out the truth, it's very clear. I think only Joint Parliamentary Committee can enquire properly," he said.

Communist Party of India (Marxist-Leninist) Liberation general secretary Dipankar Bhattacharya also demanded a JPC probe.

"Hindenburg report now shows involvement of SEBI chairperson in Adani shares. SEBI clearly cannot be expected to probe Adani group's monumental corporate fraud. SEBI chairperson must be removed and the Adani probe handed over to a Joint Parliamentary Committee," he said.

On similar lines, Rashtriya Janata Dal (RJD) leader Manoj Jha said it shows the level of corruption.

"This shows how our financial systems have been hijacked. This is the level of corruption and there are attempts to cover it up. You complain to SEBI about financial mismanagement, and now SEBI is tainted," he said.

He backed the demand for a JPC probe.

"Our systems have been rigged and rigged very badly," he said.

US short-seller Hindenburg Research alleged that it suspects SEBI's unwillingness to act against Adani group may be because of its head Madhabi Puri Buch had stakes in offshore funds linked to the conglomerate, an allegation slammed by the SEBI head as "baseless" while Adani group said it never had any commercial relations with Buch.

Hindenburg alleged that Buch and her husband had undisclosed investments in obscure offshore funds in Bermuda and Mauritius, the same entities allegedly used by Vinod Adani, the elder brother of group chairman Gautam Adani, to round-trip funds and inflate stock prices.