India's Finance Minister Addresses Conflict of Interest Claims Against SEBI Chief; Calls for Fair Consideration

India's Finance Minister Addresses Conflict of Interest Claims Against SEBI Chief; Calls for Fair Consideration

 India’s Finance Minister, Nirmala Sitharaman, has publicly addressed the ongoing controversy surrounding the Securities and Exchange Board of India (SEBI) Chairperson, Madhabi Puri Buch. Sitharaman emphasized the need to thoroughly consider the facts in light of recent conflict of interest claims raised by opposition parties, particularly the Congress party.

Madhabi Puri Buch, who has been at the helm of SEBI, is facing scrutiny from various quarters, including U.S. short seller Hindenburg Research and Indian opposition groups. The allegations center around potential conflicts of interest in SEBI's investigations involving major corporate entities such as the Adani Group. Buch has firmly denied these accusations.

The Congress party has been vocal in demanding Buch's resignation, alleging that she has conflicts of interest due to her previous roles with ICICI Bank, Mahindra Group, and Dr. Reddy's Laboratories. Buch and her husband have rebutted these claims, maintaining their innocence and asserting that there is no basis for the allegations.

In response to the controversy, Finance Minister Sitharaman stated on Monday, "Quite a few allegations are being answered by her and by her husband. Both of them together are defending themselves and putting out facts to contradict those that are being alleged by the Congress party." She indicated that the situation should be assessed based on the available evidence, and she refrained from making any premature judgments.

These comments represent Sitharaman’s first public remarks on the issue. She stressed that the government would consider the situation with an open mind and focus on factual accuracy.

In a separate discussion, Sitharaman also highlighted the need for government intervention to support small traders adversely affected by predatory pricing practices by large corporations. She emphasized the importance of protecting small businesses from unfair competition and ensuring a level playing field in the market.

The controversy over Buch’s role at SEBI and the broader implications for corporate governance and regulatory oversight continue to unfold, with ongoing debates about the impact on India's financial regulatory landscape.