A special panel may be formed to investigate the Sebi Chairperson in the Hindenburg-Adani matter, according to a report by news agency Cogencis. The matter relates to US-based short seller Hindenburg Research levelling allegations that Sebi Chairperson Madhabi Puri Buch and her husband Dhaval Buch previously held investments in offshore funds also used by the Adani group, charges categorically denied by the couple. 

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The special committee may include Sebi officials, according to Cogencis. 

In its latest report, released on Hindenburg Research's website on August 10, the US-based short seller alleged a conflict of interest in Buch's investigations surrounding the Adani group due to her previous investments.

The head of the country's markets regulator, Madhabi Puri Buch, continued to earn revenue from a consultancy firm during her seven-year tenure, potentially breaching rules for regulatory officials, news agency Reuters reported earlier citing public documents reviewed by it.

Madhabi Puri Buch and her husband Dhaval Buch released a second, more detailed statement on August 11, categorically denying the charges levelled by the US short seller, and sharing a host of specific details including their career history, education and certain investments, all within hours of the release of the Hindenburg report in which the US-based firm alleged, citing whistleblower documents, that the couple held stakes in an offshore fund where a substantial amount of money was invested by associates of Vinod Adani, brother of Adani group chairman Gautam Adani.

The latest Hindenburg report came after 18-odd months since its report on the Adani group, accusing it of financial irregularities, stock manipulation, and fraud. The conglomerate has rubbished these claims.

In an exclusive interaction with Zee Business last week, former Finance Secretary SC Garg said that Buch should step down as the recent turn of events is not "not good for the reputation" of the country's market regulator. 

In Garg's view, the government should investigate the matter closely. "The situation creates a lot of doubt... People can raise concerns about whether investigations became slower at the suggestion of the government... The government should form a new committee comprising a judge, reputed former officials of Sebi and market representatives, and be made to probe the Adani case," he said. Read more 

ALSO READ: Hindenburg attacking Sebi credibility, indulging in character assassination attempt of its chairperson, say Buchs

Capital market regulator Sebi asked investors to remain calm and exercise due diligence before reacting to such reports. 

Mutual fund industry body AMFI came in support of the Sebi chairperson, saying that the US short-seller is trying to create a trust deficit in the market ecosystem.

With inputs from agencies