Congress calls for nationwide protest on August 22, Demands SEBI chief resignation

The Congress party has declared a nationwide protest set for August 22, 2024, in reaction to claims made by Hindenburg Research concerning an alleged connection between the Securities and Exchange Board of India (SEBI) and the Adani Group. This protest seeks the SEBI chief resignation of Madhabi Puri Buch and advocates for a Joint Parliamentary Committee (JPC) inquiry into the allegations related to the Adani Group.

The controversy began on August 10, when Hindenburg Research, a financial analysis firm based in the United States, published a report asserting that Madhabi Puri Buch and her spouse, Dhaval Buch, possessed interests in offshore funds purportedly associated with financial misconduct involving the Adani Group. The report indicated that these affiliations raised serious questions about potential conflicts of interest that could have affected SEBI’s regulatory decisions concerning the Adani Group.

Nationwide Protests and SEBI Chief Resignation: Congress’s Strategic Response

Following the emergence of these allegations, Congress President Mallikarjun Kharge called a meeting with party leaders, including general secretaries and heads of state units, to devise a strategy for the party’s response and to prepare for the forthcoming assembly elections. Kharge underscored the necessity of safeguarding small investors in the stock market, asserting, “The shocking revelations of a nexus between the SEBI and Adani needs a thorough investigation. The money of small investors in the stock market cannot be jeopardized.”

During the meeting, Congress leaders agreed to initiate nationwide protests on August 22. These protests will feature demonstrations at all Enforcement Directorate offices in state capitals, reinforcing the party’s call for accountability and transparency within the regulatory framework that governs financial markets.

Congress General Secretary K.C. Venugopal expressed the party’s stance, stating that the protests would center on two key demands: the resignation of SEBI Chairperson Madhabi Buch and the formation of a Joint Parliamentary Committee inquiry into the alleged Adani “mega scam,” which he claimed implicated the Prime Minister and revealed significant lapses in the regulation of financial markets.

The accusations have ignited a significant political controversy, prompting the Congress party and other constituents of the opposition coalition, referred to as the INDIA bloc, to demand the dismissal of Buch. They contend that the credibility of the Securities and Exchange Board of India (SEBI), which serves as the country’s financial market regulator, is in jeopardy. In contrast, the ruling Bharatiya Janata Party (BJP) has charged the opposition with attempting to instigate disorder and economic turmoil in India, characterizing the demonstrations as politically driven.

In light of the allegations, Madhabi Buch and her spouse have firmly rejected any claims of misconduct, describing the accusations as “unfounded” and asserting that Hindenburg Research is seeking to compromise the integrity of SEBI. They argue that these allegations serve as a diversion from the genuine challenges confronting the financial sector.

SEBI has affirmed that the claims against the Adani Group have been meticulously examined and that Buch has consistently distanced herself from issues where potential conflicts of interest may arise. The regulatory authority underscores its commitment to operating with integrity and transparency, highlighting its dedication to safeguarding the interests of investors.

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