SEBI storm but in tea cup
Apropos of the Editorial ‘SEBI storm’ (August 13), Hindenburg’s allegations against the Adani group earlier and now the SEBI chief have failed to destabilise either Adani or the equity market in India. The ongoing investigations on SEBI’s role have not unearthed any scams except procedural lapses. The oft-repeated allegations by Hindenburg are now pointless and inconsequential. The moot question is what has Hindenburg achieved in India by such disclosures?
Vinod Johri
New Delhi
This refers to your editorial ‘SEBI storm’ (August 13). The recent allegations by Hindenburg against SEBI Chairperson Madhabi Puri Buch and her husband revolves around the definition of ‘insiders’, which extends to Ms Buch and her close relatives, including her husband, raising concerns about potential ‘conflicts of interest’.
Firstly, the concept of ‘conflict of interest’ extends beyond the redemption of her investments or the transfer of her ownership in an offshore consulting firm to her spouse. Ideally, she should have ensured that her spouse also stepped down from roles that could pose potential conflicts.
Secondly, Dhaval Buch’s role as an advisor to Blackstone, coinciding with SEBI’s regulatory changes on REITs, raises further concerns. Even if coincidental, his continued advisory position creates a perception of a ‘conflict of interest’. As a key official designated as an ‘insider,’ upfront disclosure does not entirely absolve Ms. Buch from ‘conflict of interest’ allegations. The most appropriate action would have been a complete disassociation from any roles that might pose a conflict.
Given her critical role in a top regulatory institution like SEBI, Ms. Buch should have taken more stringent measures to avoid even the appearance of impropriety. A thorough investigation is necessary to address these concerns and clarify the situation.
Srinivasan Velamur
Chennai
Jan Dhan surge
This refers to the news report ‘10 years on, ₹2.28 lakh crore in 53 crore Jan Dhan accounts’ (August 13) which indicates that the financial inclusion mission is delivering not only the intended results but also expanding financial literacy and ensuring speedy delivery of benefits to the beneficiaries as well.
However, financial literacy among the economically weaker sections is still low regarding financial technology, investments and insurance.
The players in the domestic banking and insurance sectors are introducing new tech-based products and services, but these are being exploited only by the elite class of the country, resulting in unequal distribution of wealth.
Therefore it is paramount to scale up the financial literacy level of the vulnerable sections.
VSK Pillai
Changanacherry (Kerala)
Deposit norms
Apropos ‘RBI tightens norms for deposit-taking HFCs’ (August 13). This is a much needed measure.
However, RBI must also apply a similar plan to both urban and rural co-operative banks under the control of state ministries, to protect depositors against frauds.
Rajiv Magal
Halekere Village (Karnataka)