Hindenburg report alone not sufficient for inquiry against SEBI Chief: Lokpal

Lokpal of India, India's anti-corruption authority has turned down to accept the Hindenburg Report published on August 8 and delayed action on two complaints filed against Chairperson of the Securities and Exchange Board of India ( SEBI ) Madhabi Puri-Buch.

Besides, the Lokpal has asked the complainants to produce additional "foundational and jurisdictional facts."

Headed by former Supreme Court judge Justice AM Khanwilkar, the anti-corruption body  has stated that the Lokpal cannot act merely on the Hindenburg research report.

The report had raised allegations of quid pro quo against the SEBI Chief Madhabi Puri Buch on the ground that she had investments in offshore funds linked to Adani group of companies. One of the complaints was filed by Lok Sabha MP Mahua Moitra.

In terms of Moitra's complaint, Lokpal stated that it was based on the Hindenburg report and is not sufficient to persuade the Lokap to take a firm view that there exists a prima facie case as per Section 20 of the Lokpal and Lokayuktas Act 2013 to proceed in the matter including to direct a preliminary inquiry or investigation.

The Lokpal while commenting on other complaints said that the complainant had filed the complaint in a hurry soon after downloading the Hindenburg report.

The complainant had just reproduced the factual narrative in the report without verifying its contents and collating credible material, the Lokpal further added.

Asking the complainants to put forth the efforts taken by them to verify the authenticity and credibility of the Hindenburg report, the Lokpal urged them to show how allegations against the SEBI Chief would come under the ambit of the Prevention of Corruption Act.

The Lokpal also referred to the Supreme Court's judgment delivered on January 3 this year, endorsing the SEBI investigation against the Adani group of companies. It also referred to a pending application filed in the Supreme Court based on the latest Hindenburg report. Therefore, the Lokpal said that it has to await the outcome of the Supreme Court's decision on the pending application as well as the result of the SEBI investigation in the two remaining cases out of the 24 inquiries initiated by it against the Adani group of companies.