Market veteran Madhusudhan Kela criticised US short seller Hindenburg’s allegations against Sebi chief Madhabi Puri Buch and her husband, saying the report was part of a larger “conspiracy” aimed at damaging India’s reputation. Noting the January 2023 report, which led to a significant sell-off in Adani Group shares and the stock market, Madhu Kela said he is confident that the impact will be minimal this time.

He told CNBC-TV18: “I am very clear that investors have nothing to worry about. This will not destabilise India or the markets. Something else might happen tomorrow that moves the market, but this event? No, I would not be nervous at all.”

The Hindenburg report alleged that Sebi chief Madhabi Puri Buch and her husband Dhaval Buch owned shares in offshore funds based in Bermuda and Mauritius that were used by Gautam Adani’s brother Vinod Adani to trade in Adani Group shares.

Madhu Kela said the report was full of “conspiracy” claims and did not make any clear allegations. He said, “If you are a private individual who invested in a fund on the recommendation of a friend and that fund was repaid when the friend left his job – what is wrong with that? All the money earned is legal and you have a 30-year career behind you.”

Madhu Kela reassured investors: “First of all, the markets have been incredibly resilient, surprising even optimists like me. We have seen elections, budgets, changes in capital gains and foreign exchange issues, but interest in equities remains strong. Equities are now a real asset class and not just a speculative asset. The fact that ₹23,000 crore is flowing into mutual funds through SIPs, which gives me a lot of confidence.”