| Hindenburg Allegations • New York-based Hindenburg Research released documents alleging that the ongoing SEBI investigation into insider trading violations by the Adani Group is compromised. • The documents include emails and records suggesting a conflict of interest involving the SEBI Chairman and spouse, due to their investments in Adani-related entities through offshore funds. • The core allegation involves the “hidden stakes” in offshore funds linked to professional engagements before and during SEBI tenure. |
- In the context of the Hindenburg Research’s allegations against the Securities and Exchange Board of India (SEBI) Chairperson, the Opposition demanded a Joint Parliamentary Committee (JPC) probe.
- A JPC is an ad-hoc parliamentary body established to examine specific bills or investigate financial irregularities in government activities.
| Investigation So Far • SC ordered SEBI to probe whether losses suffered by Indian investors due to Hindenburg’s previous report involved legal violations • SEBI issued a show cause notice to Hindenburg, and the court refused to transfer the investigation from SEBI to other agencies. • SEBI informed the court and nearly completed the investigation. |
- It is set up by passing a motion in one House of Parliament, supported by the other.
- The committee’s members, chosen by Parliament, typically include twice as many Lok Sabha members as Rajya Sabha members.
- The JPC is authorised to collect evidence, summon individuals, and request documents related to the matter under investigation.
- Its proceedings are confidential, except in cases of public interest.
- The committee disbands after submitting its report to Parliament.
- The Speaker has the final say in disputes over evidence collection.
Dig Deeper: Read about the Role of SEBI in the Regulation of Securities Market in India.
