Hindenburg allegations on SEBI chief invoke Chandra Kochhar's case
Securities and Exchange Board of India
India has seen several high-profile cases, with the latest Hindenburg allegations on SEBI chief Madhabi Puri Buch invoking memories of former ICICI Bank CEO Chanda Kochhar. The similarity in both cases has sent social media on overdrive.
Hindenburg research raised severe claims against SEBI chair Buch and her spouse Dhaval Buch as well. The research house ASO questions the integrity of SEBI's probe into the Adani group's fraud, with Buch's involvement in such funds. That is eerily similar to Chanda Kochhar and her husband, Deepak Kochhar, suspected of irregularities in a 3,000-crore rupee loan to the Videocon group during her time as ICICI Bank CEO.
The similarities don't end there. In 2018, Kochhar stepped down from her role as CEO of ICICI Bank after facing allegations of corruption. With Hindenburg alleging Buch's investment in funds linked to the Adani group's fraud, there is increasing pressure on Buch to resign as SEBI chief.
The other connection between Kochhar and Buch is that the SEBI chief once worked at ICICI Bank as an executive director. Before the dramatic downfall, Kochhar was one of Time magazine's 100 most powerful women in 2015 and Forbes' most powerful women seven times.
These high-profile cases bring several questions to the fore. Should the government try and bridge the gap in regulations to make sure such scenarios don't repeat? Beyond politics, what is important is to keep the confidence in India's regulatory bodies? Will the government initiate a separate probe as the opposition has demanded? Should the SEBI chief hold the position under such a scenario?