Regulatory failures can cause long-term damage to investor confidence: Congress amid SEBI row

Amid row over Hindenbergs allegations against Sebi chief Madhabi Buch the Congress on Tuesday said regulatory failures and conflicts of interest may be brazened out briefly but they can cause longterm damage to the sentiment and confidence of investorsThe opposition party also said the Indian equity market has so far enjoyed fair weather due to wellregulated markets but any lapse risks destabilising themCongress general secretaryincharge communications Jairam Ramesh said data released recently reveals that the unique registered investor base of the National Stock Exchange of India NSE with unique PANs has crossed 10 croreHe said the immediate implication of this is that integrity and transparency in financial markets matter to a large and growing number of Indians particularly the youthThe median age of these investors is 32 years and 40 per cent of all investors are below 30 years of age Ramesh said citing the NSEFinancial markets function on the assumption that regulators will regulate fairly and companies will play by the rules he saidBut when it is revealed that the SEBI Chairperson has had a serious conflict of interest and that too regarding investigations into alleged money laundering and roundtripping by the Adani Group this becomes a serious matter involving the faith of crores of investors Ramesh said in a post on XRegulatory failures and conflicts of interest may be brazened out in the short term but these can cause longterm damage to sentiment and confidence he assertedThe politician also claimed that faith in markets was also shaken by the Narendra Modimade market volatility that followed the counting of votes on June 4 2024On 13 May the selfstyled Chanakya told investors in an interview I suggest that you buy shares before June 4 It will shoot up A few days later the nonbiological PM repeatedthat the stock market would break records on June 4 Ramesh saidHe pointed out that Indian equity markets have so far enjoyed a valuation premium among emerging markets on account of our wellregulated markets and professionally managed companiesAny erosion of these pillars by regulators who are under a cloud or a Sarvagyaani knowitall PM who considers himself an expert on everything recall the demonetisation disaster risks destabilising Indian markets the Congress leader saidRameshs remarks come days after Hindenburg Research a USbased short seller launched a broadside against Securities and Exchange Board of India chairperson Madhabi Buch alleging she and her husband had stakes in obscure offshore funds used in the Adani money siphoning scandalBuch and her husband have since denied the allegations as baseless and asserted that their finances are an open bookAdani Group has also termed Hindenburg Researchs latest allegations as malicious and manipulative of select public information saying it has no commercial relationship with the SEBI chairperson or her husbandThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever