Sebi Meet Today Amid Dispute over Madhabi Puri Buch: Why Investors are Concerned?

The Securities and Exchange Board of India (Sebi) board is slated to meet today (September 30). This is the first meeting since US short seller Hindenburg made charges against Sebi chairperson Madhabi Puri Buch. The Sebi board includes four full-time and three part-time members.

Hindenburg accused Madhabi Puri Buch and her husband Dhaval Buch of investing in offshore money controlled by Vinod Adani, Gautam Adani's brother. The short seller has previously accused the Adani Group of manipulating finances and inflating the stock prices of its Indian-listed firms. The regulator investigated complaints against the group and cleared it of wrongdoing.

Madhabi Puri Buch and her husband have disputed all claims, claiming that they have complied with all Sebi filings. The meeting also comes after around 500 Sebi staff wrote to the finance ministry, claiming that the regulator was under great pressure, resulting in a "stressful and toxic work environment".

Sebi stated that the charges of an unprofessional work atmosphere were unjustified and that some "outside elements" encouraged the employee. The regulator then removed its comments, stating that the concerns would be addressed "amicably and internally".