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Time of India
28-05-2025
- Business
- Time of India
Lokpal nixes 5 plaints against Sebi ex-chief
Photo/Agencies NEW DELHI: In a relief for former Sebi chief Madhabi Puri Buch , anti-corruption watchdog Lokpal has disposed of complaints against her, describing them as "untenable, unsubstantiated and bordering on frivolity". After examining all five charges against Puri Buch, the agency decided against ordering an investigation. "...we have concluded that the allegations in the complaint(s) are more on presumptions and assumptions and not supported by any verifiable material and do not attract the ingredients of the offences," it said. Complainants, including Trinamool lawmaker Mohua Moitra, had approached the Lokpal, alleging conflict of interest and quid pro quo by Buch during her tenure as a whole-time member and subsequently as Sebi chairman. "...the complaint(s) under consideration were essentially founded on the Hindenburg Report dated Aug 10, 2024, by a known short seller trader whose focus was to expose or corner Adani Group of companies. As noted in our order dated Sept 20, 2024, that report by itself cannot be made the sole basis to escalate action against the RPS (respondent public servant)," the six-member bench led by chairperson Justice AM Khanwilkar said in its 36-page order. There were five main allegations, including the former regulator and her husband Dhaval Buch investing in a fund linked to investments in Adani group companies which were under scrutiny for stock price manipulation. Puri Buch was accused of not disclosing her investments. Based on her response, the Lokpal concluded that she was not involved with the probe and she and her spouse had redeemed their investments before the investigations started. It also noted that Puri Buch and Dhaval were not in control of where the fund invested the money. On allegations that Dhaval received money from M&M Group on the pretext of consultancy, Lokpal said he was a qualified professional who took up the assignment post-retirement and his remuneration was much less than what he earned at Unilever. It also dismissed suggestions of Puri Buch influencing cases against M&M Group, pointing out that three cases were not related to the group. The watchdog also dismissed charges of quid pro quo in the case of Blackstone, where Dhaval was engaged in a consulting role. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
India Gazette
28-05-2025
- Business
- India Gazette
Former SEBI chief Madhabi Puri Buch gets clean chit from Lokpal; No credible evidence from complainants
New Delhi [India], May 28 (ANI): The Lokpal of India has dismissed all three complaints against former Securities and Exchange Board of India (SEBI) Chairperson Madhabi Puri Buch in a case of alleged corruption against her and termed the allegations against her as 'vexatious, frivolous, and politically motivated attempts' to sensationalise regulatory matters. The complaints alleged corruption and quid pro quo involving the former SEBI chief and the Adani Group. The Lokpal in its findings stated that it found 'no credible evidence' of any 'undue advantage' or 'quid pro quo'. The findings further said that SEBI's processes, including investigations involving Adani and others, were upheld by the Supreme Court and handled by independent institutional mechanisms. The Lokpal asserted that the past investments and consultancy incomes were adequately disclosed, legitimate, and outside the scope of corruption statutes and the report of Hindenburg, a known short-seller, was not deemed reliable or sufficient to base a corruption case. The Lokpal order affirms that the allegations of regulatory favouritism involving the Adani Group were 'completely baseless.' In its order, the Lokpal viewed the Hindenburg Report as an 'unreliable' and 'partisan' document authored by a known short-seller. In its report published in August 2024, US-based short seller Hindenburg Research made allegations against Madhavi Puri Buch, accusing her of a conflict of interest. Hindenburg Research had also alleged that SEBI Chairperson Madhabi Puri Buch and her husband Dhaval Buch had stakes in 'both the obscure offshore entities used in the Adani money siphoning scandal.' SEBI Chairperson Madhabi Puri Buch and her husband Dhaval Buch had termed the allegations labelled against them as 'false, incorrect, malicious and motivated'. The Adani Group had also termed the allegations as malicious, mischievous, and manipulative selections of publicly available information to arrive at pre-determined conclusions for 'personal profiteering with wanton disregard for facts and the law.' It is publicly known that Trinamool Congress (TMC) MP Mahua Moitra and former IPS officer Amitabh Thakur had filed complaints with the Lokpal, seeking a probe into the former SEBI chief's case. (ANI)
Hans India
28-05-2025
- Business
- Hans India
Lokpal gives clean chit to former SEBI chief Madhabi Puri Buch in Hindenburg allegations case
New Delhi: The Lokpal on Wednesday gave a clean chit to former SEBI Chairperson Madhabi Puri Buch over the allegations levelled against her in the issue of US short-seller Hindenburg Research. The anti-corruption body, headed by former Supreme Court judge, Justice A.M. Khanwilkar (retd), stated, in an order dated May 28, that there is no material evidence to order an investigation against Buch. "We have concluded that the allegations in the Complaint(s) are more on presumptions and assumptions and not supported by any verifiable material and do not attract the ingredients of the offences in Part III of the (Prevention of Corruption) Act of 1988, so as to direct an investigation.... accordingly, these complaints are disposed of," the Lokpal's order said. "The Complainant(s) being conscious of this position advisedly attempted to articulate allegations independent of the stated report but the analysis of the allegations by us, ended with a finding that the same are untenable, unsubstantiated and bordering on frivolity," the order further stated. The Lokpal examined five main allegations made against Buch. These include a quid pro quo in the garb of consultancy services fees from entities like M&M and Blackstone Inc., and a quid pro quo from Wockhardt in the garb of rental income. There was also an allegation of undue advantage gained by Buch through the sale of ICICI Bank ESOPs over a period of five years between 2017 and 2024 that has been dismissed. Another allegation in which the Lokpal found no evidence relates to the pretence of recusal from matters related to M&M and Blackstone Inc. The Lokpal has come down heavily against the complainants, observing that the complainants did not submit any credible evidence in the matter while attempting to make the authority go into a roving inquiry. "What the Complainant(s) are inviting us to do is to conduct a roving inquiry into the allegations which are unfounded, speculative and bordering on frivolity," the order states. "The Complainant(s) by making such unverified and flimsy or fragile inevitably trivialised the process before the Lokpal. It is nothing short of vexatious proceedings actionable under Section 46 of the Act of 2013. We say no more," the order further stated. Following the allegations that surfaced in August 2024, then Securities and Exchange Board of India (SEBI) Chairperson Buch and her husband Dhaval Buch had strongly denied the charges, calling it a 'character assassination attempt' because an Enforcement action and show cause notice was issued to the Nate Anderson-led company the previous month. According to the joint statement issued by the couple, 'In the context of allegations made in the Hindenburg Report dated August 10, 2024, against us, we would like to state that we strongly deny the baseless allegations and insinuations made in the report'. 'The same are devoid of any truth. Our life and finances are an open book. All disclosures as required have already been furnished to SEBI over the years. We have no hesitation in disclosing any and all financial documents, including those that relate to the period when we were strictly private citizens, to any and every authority that may seek them,' read the joint statement. Meanwhile, Hindenburg Research has itself shut down operations amid major short-selling controversies in the US that brought the company under a cloud.
Hans India
28-05-2025
- Business
- Hans India
SEBI's former chief Madhabi Puri Buch gets relief in Hindenburg allegations case
New Delhi: In relief for former SEBI Chairperson Madhabi Puri Buch, the Lokpal has quashed complaints of conflict of interest and inappropriate financial gain against her based on a report by the now-defunct Hindenburg Research. The Lokpal, headed by former Supreme Court judge, Justice A.M. Khanwilkar (retd), held that there was no prima facie proof to substantiate the allegations. The anti-corruption watchdog termed the allegations against her baseless, unproven, and not supported by credible evidence. Following the allegations that surfaced in August 2024, then Securities and Exchange Board of India (SEBI) Chairperson Buch and her husband Dhaval Buch had strongly denied the charges, calling it a "character assassination attempt' because an Enforcement action and a show cause notice was issued to the Nate Anderson-led company the previous month. According to the joint statement issued by the couple, "In the context of allegations made in the Hindenburg Report dated August 10, 2024, against us, we would like to state that we strongly deny the baseless allegations and insinuations made in the report". "The same are devoid of any truth. Our life and finances are an open book. All disclosures as required have already been furnished to SEBI over the years. We have no hesitation in disclosing any and all financial documents, including those that relate to the period when we were strictly private citizens, to any and every authority that may seek them," read the joint statement. "It is unfortunate that Hindenburg Research against whom SEBI has taken an Enforcement action and issued a show cause notice has chosen to attempt character assassination in response to the same".
Yahoo
26-02-2025
- Business
- Yahoo
Super Micro Computer finally issues belated financial reports and blames accounting firm EY for the holdup
is attempting to remove itself from the hot seat by publishing delinquent financial flings it owed to investors by a deadline set by Nasdaq. The company has been embroiled in a financial filing imbroglio since August when it was hit with a short seller report from Hindenburg and delayed reporting to investors. Multiple family relationships worth millions between founder and CEO Charles Liang, his wife Sara Liu Liang, and their extended family are revealed in the documents. Super Micro Computer has offered up a belated annual financial report for fiscal 2024 and quarterly filings for the first and second quarters of fiscal 2025 to investors months after they were due, and the Silicon Valley tech giant is claiming that former accounting firm EY is to blame for its tardiness. The server and storage provider, which counts Nvidia as a partner and includes its prized graphics processing units in its servers, is closely watched due to its rise to the Fortune 500 and its adjacency to Nvidia. Super Micro was the subject of a short report from Hindenburg Research in August, and soon after announced that it would delay filing audited financials to investors, sending the stock into a tailspin amid media reports and scrutiny. The company secured an extension from Nasdaq to file its annual financial and quarterly reports, and hit the deadline on Tuesday. In them, the company acknowledged weaknesses in its internal controls over financial reporting and noted that it amended the terms of its convertible debt due to the delay. Super Micro's interest rate rose to 3.5% as a result. 'Today's filings represent an important milestone,' said CEO and founder Charles Liang in a statement. Liang said the company will now fully focus on the business at hand and a revenue target of $40 billion. That might be easier said than done. Since August, the company and Liang have been hit with at least five lawsuits in various courts in Canada and California—where the company is headquartered—due to the delay. In late 2024, the Department of Justice and the Securities and Exchange Commission both subpoenaed the company for a wide range of documents related to the allegations in the Hindenburg Report. Super Micro said it is cooperating with the probes. EY in July 2024 told the board's audit committee—a group of independent directors on the board—that it was concerned about the governance, transparency, and internal controls over Super Micro's financial reporting. In auditor speak, this was a significant red flag going up to the corporate board, which has the power to hire, fire and influence the CEO. In response to EY's concerns, Super Micro brought in an independent law firm, Cooley, and forensic accounting firm Secretariat Advisors to investigate the issues EY raised. Super Micro stated the costs of the investigation have already reached $18.6 million. After the investigation, EY resigned as Super Micro's independent public accounting firm, setting off a stock selloff and raising significant questions as to whether Super Micro might be suspended by Nasdaq. For its part, Super Micro disagreed with EY's resignation and said its independent review did not give rise to substantial concerns about the integrity of senior management. Super Micro appointed BDO USA as its accounting firm in November 2024. The company pointed the finger at EY for the delinquent reports. 'Due to EY's stated concerns and subsequent resignation, we were unable to timely file our Annual Report and Quarterly Reports on Form 10-Q for the quarterly periods ended September 30, 2024 and December 31, 2024,' the company said in its report on Tuesday to investors. EY did not respond to a request for comment. The annual financial report lays out Super Micro CEO Liang and his wife Sara Liu Liang's extensive dealings with family members and their businesses through Super Micro. Ablecom, a Taiwan corporation, is one of Super Micro's major contract manufacturers. A second Taiwan company, Compuware, is a distributor of its products. Ablecom's CEO, Steve Liang, is the brother of Super Micro CEO Charles Liang. Steve Liang and his family owned 35% of Ablecom's stock and Charles and Sara Liu Liang owned 10.5% of Ablecom's stock. Bill Liang, brother to Charles and Steve, is the CEO of Compuware and a member of the board at Ablecom. Meanwhile, Steve Liang is also a member of Compuware's board. Finally, a sibling of Yih-Shyan (Wally) Liaw, is senior vice president of business development at Super Micro, and owns 11.7% of Ablecom's stock and 8.7% of Compuware's stock. In October 2018, Liang had to borrow $12.9 million from his brother Steve's wife Chien-Tsun Chang because he had to repay margin loans to two banks that he had secured with Super Micro stock after the company was suspended in 2018. As of June 2024, he owed his sister in law is $16.4 million. The company also provided new details on its dealings with Leadtek Research, which is an authorized reseller of Super Micro. Ablecom and Compuware bought a 30% interest in the Taiwan graphics cards and workstation provider in October 2023. After closing the investment, Steve Liang and Bill Liang served as two of the seven members of Leadtek's board. Since then, Super Micro sold $1.4 million in servers to Leadtek and bought $2.1 million in graphics cards from it. Super Micro also indirectly sold products from Aeon Lighting Technology through a system integrator. Aeon is 10% owned by James Liang and he serves as the CEO. James is another brother of Charles Liang. 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