Hindenburg trying to malign SEBI, creating market trust deficit: Mutual Funds body

Mumbai, Aug 11 The Association of Mutual Funds in India (AMFI) on Sunday slammed the latest Hindenburg report against SEBI Chairperson Madhabi Puri Buch and her husband Dhaval Buch, saying the US short-seller is trying to create a trust deficit in market ecosystem. In a statement, the AMFI said that external comments on the markets 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 mutual fund industry body warned that if the allegations were 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, said the AMFI, adding that the report also “seeks to malign the hard-earned achievements of our nation”. The AMFI further said that the market structure in India is “strong”.

“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,” said the industry body. According to the IMFI, several important measures have been taken under the leadership of the current SEBI Chairperson, and SEBI regulations have made mutual funds the most transparent and effective product.