The Association of Mutual Funds in India (AMFI) has slammed Hindenburg Research
The Association of Mutual Funds in India (AMFI) has slammed Hindenburg Research's fresh attack on SEBI chairperson Madhabi Puri Buch and her husband Dhaval Buch. The US short seller is trying to create a trust deficit in market ecosystem, AMFI said.
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"Recent external comments on the regulator's chairperson not only attempt to undermine Madhabi Buch's contribution to the Indian capital market, but it also undermines our country's economic progress, and creating a trust deficit in the market ecosystem must be seen for what they truly are - attempts to create sensation by connecting random events done in the past," the industry having nearly Rs 65 lakh crore in asset under management said.
AMFI warned that if the allegations are left unchecked, they can create unnecessary hurdles in the path of the world's fastest-growing economy. Hindenburg's claims lack context and understanding of the Indian regulatory environment, it said, adding they also "seek to malign the hard-earned achievements of our nation".
The market structure in India is "strong", the AMFI said, asking all the stakeholders to remain confident. "Over a period, the regulator has created a well-functioning market trusted by both local and global investors with several measures taken under the current leadership of SEBI chairperson," it said.
Madhabi Buch has termed the allegation "baseless" in a joint statement with her husband, while Adani Group has denied having any commercial relations with the banker-turned-regulator.
Several important measures were taken under the leadership of the current SEBI chairperson, and SEBI regulations have made mutual funds the most transparent and effective product, AMFI said. Madhabi Buch and husband Dhaval Buch in a detailed statement rejecting the allegations accused Hindenburg of tarnishing their reputation.
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