Madhabi Buch – TheNewsHub https://thenewshub.in Fri, 25 Oct 2024 16:24:00 +0000 en-US hourly 1 https://wordpress.org/?v=6.7.1 Hindenburg Report: Why Corporate Law Firms Are Advocating For Madhabi Buch's Tenure Extension? Know All About ‘Gold Cadbury In GIFT’ https://thenewshub.in/2024/10/25/hindenburg-report-why-corporate-law-firms-are-advocating-for-madhabi-buchs-tenure-extension-know-all-about-gold-cadbury-in-gift/ https://thenewshub.in/2024/10/25/hindenburg-report-why-corporate-law-firms-are-advocating-for-madhabi-buchs-tenure-extension-know-all-about-gold-cadbury-in-gift/?noamp=mobile#respond Fri, 25 Oct 2024 16:24:00 +0000 https://thenewshub.in/2024/10/25/hindenburg-report-why-corporate-law-firms-are-advocating-for-madhabi-buchs-tenure-extension-know-all-about-gold-cadbury-in-gift/

In 2022, a report from American short-seller Hindenburg Research sent shockwaves through the Indian stock market with bold accusations against the Adani Group. Following the report’s release, Adani’s shares faced a steep decline.

Among its claims, Hindenburg alleged that companies under the Adani Group had breached Securities and Exchange Board of India (SEBI) regulations concerning minimum public shareholding, with promoter stakes allegedly surpassing the 75% limit. 

Beyond these accusations, Hindenburg also raised questions about SEBI Chairperson Madhabi Puri Buch, suggesting a potential conflict of interest tied to her past investment in an offshore fund linked to Adani. Buch denied the allegations, clarifying that her investments predate her tenure at SEBI and that all necessary disclosures were made.

According to Buch, these claims were seemingly aimed at damaging her reputation. Following these developments, SEBI issued a “show cause” notice to Hindenburg for alleged non-compliance with Indian regulations.

SEBI and PAC Review Amid Allegations

Currently, SEBI and its Chairperson Buch are under scrutiny, with the regulatory authority facing rigorous inquiries concerning stock market oversight in the wake of Hindenburg’s report. A parliamentary panel, including representatives from various political parties, was scheduled to question Buch and senior SEBI officials, pressing for her presence despite her excused absence due to personal commitments.

This committee’s mission is to evaluate SEBI’s performance, while opposition lawmakers appear focused on probing the accusations linked to Buch’s offshore investments.

SEBI’s Chair has recently faced additional criticism from the opposition party, which raised concerns about her involvement in offshore funds tied to the Adani Group. These legislators argue that such connections may breach the regulator’s code of conduct.

Corporate Law Firms Advocate for SEBI Chief’s Tenure Extension

Numerous corporate law firms are urging the government to extend Madhabi Puri Buch’s tenure as SEBI’s Chair, given her proactive approach in enforcing regulatory actions. Since Buch’s appointment, SEBI has introduced Key Result Areas (KRAs) for its officials, fostering a strong work ethic with an increase in activities like issuing Show Cause Notices, investigations, and raids.

This heightened regulatory focus has meant new business opportunities for legal firms, as larger corporations find themselves facing SEBI scrutiny. Recently, for example, SEBI issued a Show Cause Notice to a corporation for allegedly favouring its interests over those of ordinary shareholders.

Gold Cadbury in GIFT City’: A New Attraction for Gold Importers

Gandhinagar’s GIFT City is drawing increased interest from gold importers, and for good reasons. First, the import duty for gold is set 1% lower than the national rate, making it an attractive import hub. Additionally, unlike other regions, gold imported into GIFT City doesn’t need to be melted and molded before being sold, allowing it to be traded immediately and saving importers processing costs.

However, this setup is sparking concerns among jewelers outside GIFT City, who feel it creates an uneven playing field.

Interestingly, banks that import gold through other ports have been hesitant to register in GIFT City, despite there being no restrictions on registration. So far, only a few select importers are taking advantage of GIFT City’s favorable conditions, highlighting an opportunity for government-backed banks to consider the rising demand for unprocessed gold imports.

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Denied exemption, Sebi chief Madhabi Buch set to appear before PAC tomorrow https://thenewshub.in/2024/10/22/denied-exemption-sebi-chief-madhabi-buch-set-to-appear-before-pac-tomorrow/ https://thenewshub.in/2024/10/22/denied-exemption-sebi-chief-madhabi-buch-set-to-appear-before-pac-tomorrow/?noamp=mobile#respond Tue, 22 Oct 2024 22:19:13 +0000 https://thenewshub.in/2024/10/22/denied-exemption-sebi-chief-madhabi-buch-set-to-appear-before-pac-tomorrow/

NEW DELHI: After much suspense, Sebi chairperson Madhabi Buch is scheduled to appear before the Public Accounts Committee of Parliament on Thursday, a meeting that on agenda is slated to be a performance review of the top regulator, but which may result in fireworks over its functioning as well as about the recent allegations of impropriety levelled against Buch.
Well-placed sources said Buch had sought an exemption from the PAC, but was denied. They said she should be present before the committee.
The agenda of the committee’s meeting is “briefing by audit followed by oral evidence of the representatives of ministry of finance and Sebi on the subject ‘performance review of regulatory bodies established by Act of Parliament’.”
When the summons were issued to Buch for appearance this month, BJP protested the decision of the PAC headed by Congress MP and AICC general secretary KC Venugopal, and attributed political motives to his move. BJP members had also written a letter to the Lok Sabha Speaker protesting the summons. However, the issue appears to have settled in favour of the PAC summons.
Sources said BJP has issued a whip to its members to attend the meeting, and protests against opposition members on their line of questioning may be in the offing. Though the said agenda is limited to the Sebi’s functioning, political leaders believe that the Sebi chief headed team may be subjected to questions about the regulator’s functioning, which gained prominence over the issue of industrialist Adani in the wake of the allegations levelled by US short-seller Hindenburg.
Also, specific questions could be asked to Buch about allegations of financial misconduct and of conflict of interest. While the charges against Buch were first levelled by Hindenburg, they were followed up by various whistleblowers, and by the opposition led by Congress, triggering a political storm. Buch and her husband have rebutted the allegations.



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