New Delhi, August 12, 2024 – The political landscape has been shaken following the release of a damning report by Hindenburg Research, implicating key figures within the Securities and Exchange Board of India (SEBI). AICC General Secretary and Member of Parliament, KC Venugopal, has expressed deep concern over the revelations, calling for an immediate Joint Parliamentary Committee (JPC) inquiry into the matter.
Venugopal, addressing the media, described the situation as “really shocking,” particularly due to the involvement of the SEBI chairperson in the alleged scandal. “It was a really shocking situation when the SEBI chairperson itself is involved in this entire episode,” he remarked, highlighting the gravity of the accusations.
The Hindenburg Research report has sparked widespread controversy, alleging significant lapses in regulatory oversight and suggesting that the SEBI chairperson played a central role in the mismanagement. These revelations have led to a crisis of confidence in SEBI, with Venugopal asserting that the agency’s credibility has been severely compromised.
In his statement, Venugopal reiterated the Congress party’s demand for a JPC inquiry, a call that has been made previously in light of other alleged irregularities within the regulatory body. “We are demanding a JPC inquiry on it. Earlier also, we demanded a JPC inquiry,” he stated, emphasizing the need for thorough and transparent investigations.
Venugopal also criticized what he termed a “misleading report” provided to the Supreme Court, suggesting that the apex court was not given accurate information in earlier proceedings related to the issue. “I think they had given a misreading report to the Supreme Court earlier,” he said, expressing hope that the Supreme Court might take suo moto cognizance of the new developments.
The call for the SEBI chairperson’s resignation was unequivocal. Venugopal stressed that the chairperson’s continued tenure is untenable in light of the serious allegations. “The country is expecting that without any delay the SEBI chairperson should resign from the post,” he asserted, adding that the damage to SEBI’s reputation is irreparable. “Now the credibility of SEBI is totally eradicated, how can she continue as a chairperson?” he questioned.
As the demand for a JPC inquiry gains momentum, the political pressure on SEBI and its leadership is likely to intensify. The fallout from the Hindenburg Research report has not only put SEBI under the microscope but has also raised broader concerns about regulatory accountability and transparency in India’s financial markets.