Hindenburg 2.0: Sebi must fix two systemic issues to strengthen processes

The episode has raised two issues that must be addressed - first, of stock manipulation and violation of public shareholding norms via offshore funds, and second, disclosure norms for decision makers

US-based short-seller Hindenburg Research has made fresh allegations in the Adani Group matter in the past few days. And its target this time have been securities market regulator Securities and Exchange Board of India (Sebi) and its chairperson, Madhabi Puri Buch. Hindenburg has questioned Sebi’s objectivity in the Adani probe and alleged Ms Buch is a conflicted party because she and her husband Dhaval Buch invested in one of the funds that is said to have been used for pumping money into Adani shares. It has further alleged that the regulator is promoting real estate investment trusts