SEBI-Hindenburg-Adani: How Not To Handle a Credibility Crisis https://www.moneylife.in/article/sebihindenburgadani-how-not-to-handle-a-credibility-crisis/74897.html Sucheta Dalal 12 August 2024 As one of the top-5 capital markets in the world and a key resource mobiliser for the Indian economy, restoring confidence in the independence of our regulatory mechanism is of paramount importance today. What we are witnessing, instead, is a textbook example of how not to handle such a situation.
SEBI already has a precedent of CB Bhave being ring-fenced from a SEBI investigation into the National Securities Depository Ltd (NSDL) when he was appointed chairman, even though it did not involve personal investments. A board-monitored committee, perhaps comprising the three whole-time members (WTMs) could have been set up to handle the Adani investigation in consultation with the finance ministry.
India’s national interest is not served by defending one business group. With a market capitalisation of several lakh crores and the savings of countless ordinary people riding on the market, it is imperative that SEBI remains credible and is seen to adhere to the rules and compliance standards it imposes on all stakeholders.
Comment by S Sen:
Her recommendation of a judicial investigation, however, one cannot agree with. Indian judicial system stands compromised and/or too intimidated. Its investigation process will remain largely opaque...At the end, (it) would, most likely, produce a stunning outcome as it had in the military-grade spyware Pegasus case.
The JPC proceedings, in stark contrast, are, of course, going to be a grand (democratic) tamasha. That's precisely its strength.