Sebi Board To Meet Today Amid Hindenburg Claims & Staff Complaints

The Securities and Exchange Board of India (Sebi) is set to hold a pivotal meeting on Monday, the first since chairperson Madhabi Puri Buch faced serious allegations from Hindenburg Research and India’s Congress party. Compounding the pressures on the regulator, Sebi employees have also voiced complaints about a toxic work culture.

Although the official agenda for the meeting doesn’t include the conflict of interest accusations against Buch, media reports suggest these issues may be discussed informally. Buch, who was appointed chairperson in 2022, previously led a regulatory probe clearing the Adani Group. However, Hindenburg’s report alleges financial ties between the Buch family and Adani-affiliated funds, raising concerns over a potential conflict of interest. The report further claims that Sebi altered regulations regarding real estate investment trusts (REITs) to benefit Blackstone, where Dhaval Buch, a family member, holds a senior advisory role.

Additionally, internal tensions within Sebi have intensified. Employees recently lodged a formal complaint with the Ministry of Finance, alleging immense pressure and a hostile work environment. Sebi initially blamed external factors for the unrest but later retracted that stance after facing employee backlash.

The outcome of Monday's meeting may shape how Sebi tackles the growing controversies surrounding its leadership while maintaining its regulatory duties under increased scrutiny.