‘One has to be careful…’: What Raghuram Rajan has to say about SEBI chief Madhabi Puri Buch row
SEBI chief Madhabi Puri Buch row: Raghuram Rajan emphasised the importance for regulators to be credible, underscoring that it helps the country, the markets, and the regulators themselves.
- Oct 3, 2024,
- Updated Oct 3, 2024 9:01 AM IST
Former Reserve Bank of India Governor Raghuram Rajan acknowledged that allegations on someone of SEBI Chairperson Madhabi Puri Buch’s stature could emerge from anywhere but it is really important for the regulator to address the allegations point by point.
Speaking to news agency PTI, Rajan said, “One has to be careful here as allegations can be made by anybody at any time,” adding that it is important to address these claims in detail.
"If there is sufficient investigation that has gone into allegations, then it is really important for the regulator to be like: 'Caesar’s wife must be above suspicion', which means that you have to address the allegations point by point," he said, when asked about the mounting allegations against Buch.
US-based short seller Hindenburg Research accused Buch of conflict of interest. It said in its report that Buch and her husband Dhaval Buch had investments in offshore funds, controlled by Vinod Adani, brother of Adani Group Chairman Gautam Adani, which was accused by the short-seller of manipulating funds and inflation stock prices, inviting a probe by the SEBI. The regulator, headed by Buch, had given it a clean chit.
Rajan emphasised the importance for regulators to be credible, underscoring that it helps the country, the markets, and the regulators themselves. He said regulators need to be transparent and that the more detailed the investigation gets, the more detailed the response needs to be, as per the news agency.
Buch was also accused by the Congress party of trading in listed securities and selling employee stock options from her previous employer ICICI Bank when she was serving at SEBI. It said certain companies availed consultancy services from Agora Advisory when Madhabi Puri Buch was serving as a whole-time director of SEBI.
Moreover, around 500 employees of SEBI wrote to the finance ministry last month saying there was immense pressure at the regulator, resulting in a “stressful and toxic work environment”.
Madhabi Puri and Dhaval Buch have denied all the allegations, and said they have complied with all the regulations of SEBI, and disclosed the details of her shareholding and investments to the regulator when she joined in 2017.
Former Reserve Bank of India Governor Raghuram Rajan acknowledged that allegations on someone of SEBI Chairperson Madhabi Puri Buch’s stature could emerge from anywhere but it is really important for the regulator to address the allegations point by point.
Speaking to news agency PTI, Rajan said, “One has to be careful here as allegations can be made by anybody at any time,” adding that it is important to address these claims in detail.
"If there is sufficient investigation that has gone into allegations, then it is really important for the regulator to be like: 'Caesar’s wife must be above suspicion', which means that you have to address the allegations point by point," he said, when asked about the mounting allegations against Buch.
US-based short seller Hindenburg Research accused Buch of conflict of interest. It said in its report that Buch and her husband Dhaval Buch had investments in offshore funds, controlled by Vinod Adani, brother of Adani Group Chairman Gautam Adani, which was accused by the short-seller of manipulating funds and inflation stock prices, inviting a probe by the SEBI. The regulator, headed by Buch, had given it a clean chit.
Rajan emphasised the importance for regulators to be credible, underscoring that it helps the country, the markets, and the regulators themselves. He said regulators need to be transparent and that the more detailed the investigation gets, the more detailed the response needs to be, as per the news agency.
Buch was also accused by the Congress party of trading in listed securities and selling employee stock options from her previous employer ICICI Bank when she was serving at SEBI. It said certain companies availed consultancy services from Agora Advisory when Madhabi Puri Buch was serving as a whole-time director of SEBI.
Moreover, around 500 employees of SEBI wrote to the finance ministry last month saying there was immense pressure at the regulator, resulting in a “stressful and toxic work environment”.
Madhabi Puri and Dhaval Buch have denied all the allegations, and said they have complied with all the regulations of SEBI, and disclosed the details of her shareholding and investments to the regulator when she joined in 2017.