Hitting out at the Securities and Exchange Board of India (SEBI) over the Hindenburg Research report against its Chairperson Madhabi Puri Buch, The Congress, on Monday, reiterated its demand for a Joint Parliamentary Committee (JPC) probe into the matter.

Hindenburg, the US-based short seller, on Saturday, alleged that “Buch and her husband Dhaval Buch had stakes in obscure offshore entities used in the Adani money siphoning scandal.”

However, the couple, in a joint statement on Sunday, dismissed the Hindenburg report as an attempt at “character assassination” following SEBI’s recent enforcement action and show cause notice issued to the US-based short seller.

Congress general secretary in-charge of Communications Jairam Ramesh said, “In its 11th August 11, statement on the on-going investigations into certain financial transactions of the Adani Group, the SEBI has sought to project an image of hyperactivity, stating that it has issued 100 summons, issued 1,100 letters and emails, and examined 300 documents containing 12,000 pages. This must have been very exhausting, but it diverts attention from the core issues involved. Actions matter, not activities.”

Claiming that on 14th February, 2023 he had written to the SEBI urging it to ‘play its role as the steward of India’s financial markets on behalf of the crores of Indians who have faith in the fairness of India’s financial markets, Ramesh said, “I never received a reply.”

He said, “On 3rd March, 2023, the Supreme Court directed the SEBI to expeditiously conclude the investigation into allegations of stock manipulation and accounting fraud against the Adani Group within two months.”

“Now, 18 months later, SEBI has revealed that a critical investigation, likely regarding whether Adani violated Rule 19A relating to minimum public shareholding, remains incomplete. The fact is that the SEBI’s seeming inability to close two of its 24 investigations delayed the publication of its findings for over a year,” the MP said.

Attacking Prime Minister Narendra Modi, Ramesh said, “This delay conveniently allowed the PM to navigate an entire general election without addressing his role in facilitating his close friend’s illicit activities. Despite the Adani Group’s claims of receiving a ‘clean chit’, SEBI has reportedly issued show-cause notices to several Adani companies concerning these allegations.”

“However, the slow pace of these investigations, especially compared to the swift ‘justice’ that the PM’s investigative agencies usually deliver to opposition leaders, remains inexplicable. Moreover, recent revelations raise disturbing questions about SEBI’s integrity and conduct in investigating the Adani Mega Scam,” he said.

Referring to the recent Hindenburg report, the parliamentarian said, “SEBI, long considered a trustworthy global financial market regulator, is now under scrutiny. It is shocking to discover that SEBI Chairperson and her husband invested in the same opaque Bermuda- and Mauritius-based offshore funds where Vinod Adani and his close associates, Chang Chung-Ling and Nasser Ali Shaban Ahli, also invested.”

Asserting that no institution is sacrosanct in ‘Amrit Kaal’, he said,” Did the SEBI Chairperson recuse herself from the Adani investigations? Do these conflicts of interest explain the prolonged investigation, a delay that has benefited both Adani and the PM while damaging SEBI’s reputation? How can a match proceed if the umpire herself is compromised?”

“The SC, empowered by the Constitution, must transfer the investigation to the Central Bureau of Investigation (CBI) or a Special Investigation Team (SIT) given the likelihood of SEBI’s compromise. At a minimum, the SEBI Chairperson must resign to restore SEBI’s integrity,” he said.

Ramesh further said, “The Adani Mega Scam extends beyond the 24 matters under SEBI’s investigation. It encompasses the source of the Rs 20,000 crore benami funds invested in the Adani Group, the over-invoicing of thousands of crores in coal and power equipment, and the laundering of those proceeds. The path forward is to immediately convene a JPC to investigate the full extent of the Modani Mega Scam involving the self-anointed non-biological PM and a perfectly biological businessman.”

In a statement, the SEBI on Sunday said, “SEBI, over the years, has built a robust regulatory framework that not only aligns with best global practices but also ensures protection of investors.”

The SEBI said it remains committed to ensuring the integrity of India’s Capital markets and its orderly growth and development.