Allegations against Sebi amid India’s market bull run

Over the past month, the chief of India’s market regulator, Sebi, has faced a series of serious allegations that threaten her credibility. Subhash Chandra Goyal, chairman emeritus of Zee Entertainment, accused her of corruption and vindictiveness, linking her actions to the failed merger with Sony Enterprises. Despite these claims, Sebi has labeled them as misplaced, suggesting that junior officers may have been misled by external influences. This situation has sparked protests demanding a retraction of Sebi's statements, indicating a growing discontent within the regulatory body. Madhabi Puri Buch, the chairperson, has defended herself against accusations of conflict of interest, particularly regarding the Hindenburg case. However, concerns about transparency in her financial dealings have emerged, raising questions about whether Sebi enforces the same standards on its officials as it does on public companies. The board of Sebi, which includes members from the finance ministry and the central bank, is under pressure to address these allegations publicly. Market experts suggest that the ongoing controversy could lead to Buch not having her appointment renewed. The implications of these allegations extend beyond Sebi, as they may affect investor confidence in the Indian market. Global investors already factor in regulatory risks when investing in India, and the current situation could prompt retail investors to withdraw from the market, further destabilizing it. The unfolding events serve as a critical lesson for Sebi and other Indian regulatory bodies, emphasizing the need for robust disclosure processes. As the situation develops, the government or judiciary may need to intervene to ensure a credible investigation into the allegations against Buch.