Hindi English Translation || Editorial || ​Step down: On upholding the integrity of SEBI

​Step down: On upholding the integrity of SEBI

For the sake of a fair investigation, Madhabi Puri Buch must resign

Not since the Harshad Mehta scam of 1992 has India’s securities regulations (supervision, overseeing, monitoring, inspection; control, direction, guidance) and oversight (निगरानी, निरीक्षण) come under (के अंतर्गत आना) such scrutiny (examination, inspection, investigation). The Securities and Exchange Board of India (SEBI), which was established (स्थापित करना, प्रारंभ करना) as a statutory body that year — it was constituted (initiate, establish, start, begin, initiate, create, form, organize, put in place) as a non-statutory (गैर सांविधिक) body in April 1988 through a resolution (संकल्प, प्रस्ताव) of the Government of India — now faces allegations (आरोप) of bias (पक्षपात, पूर्वाग्रह) and conflict of interest (हितों का टकराव) right at the top. The stakes (दांव) are much higher with the Indian stock market (a place where shares of pubic listed companies are traded; share market, equity market) now a $5.3 trillion financial powerhouse (a person/organisation/country/state with a lot of energy, power & influence). Over the years, SEBI has put in place robust (मजबूत, शक्तिशाली) systems of checks and balances (a system in which all departments of a government organization have right to amend/limit the powers of the other departments in order to avoid dominance of one department) that have constantly (निरंतर, लगातार) evolved (विकसित होना) to ensure that India’s securities market and financial system gained the reputation (good name, position, standing, status, eminence) of being one of the most reliable (dependable, trustworthy, authentic, steadfast, well built, well founded) globally. However, the accusations (charge, allegation) of a conflict of interest levelled (direct a accusation) by New York-based short-seller (a person who sells a stock that he/she doesn’t own) Hindenburg Research against SEBI chairperson Madhabi Puri Buch in the conduct (management, regulation, running, managing, controlling) of the ongoing (in progress, under way, going on, continuing, happening, current) investigations against the Adani Group, the Ahmedabad-based global infrastructure (the basic physical or organisational structure or framework that a country or organization needs in order to function properly. For a whole nation, it includes all the physical systems such as buildings, roads & railways networks, utilities, etc) to FMCG major (a major organization/company; conglomerate), for alleged (supposed, so-called, claimed, professed, reported, ostensible) stock price manipulation (falsification, misinformation, misreporting, misstatement, misrepresentation) and corporate malfeasances (deception, duplicity, lying, falseness, falsehood, untruthfulness wrongdoing, misconduct (particularly by a public official)), have cast a shadow on (to make people feel less happy, to make situation appear less good or hopeful; disappoint, let down, discourage, demoralize, wear down) the statutory regulatory body. The main conflict concerns investments made by Ms. Buch and her husband Dhaval Buch in obscure (unclear, uncertain, unknown, doubtful, mysterious) offshore (registered/situated at foreign country to take advantage of lower taxes or less regulation) funds based in two tax havens (a country that imposes/charges/levies low tax rates on certain economic activities, especially to attract wealthy individuals and (foreign) businesses), Bermuda and Mauritius, where Adani Group Chairman Gautam Adani’s brother Vinod Adani had allegedly (ostensibly, supposedly, reportedly, presumably) also made investments. A second conflict (dispute, disagreement) arises over the Buchs’ consultancy firms in Singapore and India that the couple said were used by Mr. Buch to advise “prominent (important, notable, famous, well known) clients in the Indian industry” since 2019. It is not clear if some of them are SEBI-regulated (controlled by SEBI). The Buchs claim (state, declare, insist, affirm, assert, attest (without proof) that these firms “went dormant (inactive, passive, inoperative) immediately” upon Ms. Buch’s acceptance (approval, adoption, integration, welcoming) of the whole-time membership on SEBI’s Board. However, Hindenburg, in its rebuttal (denial, counterstatement, counter-argument, disproval) to this response, claims that not only was the Indian entity (organization, set-up, outfit, unit) functioning but it also clocked (gain, earn, make, achieve, attain, register, record) revenues of about $3,00,000 between financial years 2022-24.

This is an unprecedented (not done or experienced before) case with wide ramifications (consequence, result, aftermath, outcome, effect, aftereffect, implication, repercussion) where the Indian financial regulator’s (an association/statutory body that supervises a particular business activity) top appointee (one who is appointed to a job/position; representative, delegate, office holder) is directly involved. The Adani Group has been under SEBI investigation for charges related to stock market manipulations for the past 18 months. SEBI has said that 23 out of the 24 charges under investigation have been completed. Whether or not Ms. Buch influenced (affect, have an effect on, exert influence on, control, determine, pressurize) investigations or decisions involving the Adani Group, the real issue is that there can be no room (scope, chance, leeway, freedom, latitude, opportunity (for something to happen)) for any lingering (remaining, persisting, lasting, continuing, unending, unrelenting, long-drawn-out, prolonged, protracted, dragging, unabating) doubts about her conduct. It would be in the fitness of things (suitable, appropriate, proper, fitting) for Ms. Buch to resign from her position to ensure a thorough (complete, total, rigorous, in-depth, detailed, extensive, intensive) investigation into the allegations against the Adani Group. After all (most importantly, above all, ultimately, basically, first and foremost), the integrity of India’s securities regulatory body itself is at stake (at issue, at risk; or in question).

Courtesy: The Hindu

Important Word List With Meaning

1.step down (verb)

Hindi Meaning - पद से इस्तीफा देना, पद छोड़ना
English Meaning - give up a job or position; leave, quit, resign, retire, stand down, call it a day.

2.uphold (verb)

Hindi Meaning - बनाए रखना
English Meaning - confirm, endorse, justify, support, sustain, maintain, continue, keep up, protect, preserve.

3.integrity (noun)

Hindi Meaning - ईमानदारी, सत्यनिष्ठा
English Meaning - righteousness, uprightness, morality, probity, honesty, fairness.

4.oversight (noun)

Hindi Meaning - निगरानी, निरीक्षण
English Meaning - supervision, inspection, surveillance, administration, management, handling, overseeing.

5.come under (phrasal verb)

Hindi Meaning - के अंतर्गत आना
English Meaning - be subject to.

6.establish (verb)

Hindi Meaning - स्थापित करना, प्रारंभ करना
English Meaning - set up, start, begin, initiate, create, form, put in place.

7.non-statutory (adjective)

Hindi Meaning - गैर सांविधिक
English Meaning - another term for common law. Non-statutory bodies are not regulated by law. They get their powers from an executive order issued by the central government.

8.resolution (noun)

Hindi Meaning - संकल्प, प्रस्ताव
English Meaning - a form in which a legislative body expresses an opinion or a purpose with respect to a given matter or topic (that is temporary in nature).

9.allegation (noun)

Hindi Meaning - आरोप
English Meaning - charge, accusation, indictment.

10.bias (noun)

Hindi Meaning - पक्षपात, पूर्वाग्रह
English Meaning - prejudice, partiality, favouritism, unfairness, discrimination.

11.conflict of interest (noun)

Hindi Meaning - हितों का टकराव
English Meaning - a situation in which a person cannot do his/her job fairly because he/she has the power to decide something in a way that would be to his/her advantage, although this may not be the best decision.

12.(high) stakes (noun)

Hindi Meaning - दांव
English Meaning - (high-risk) competition, contest, battle, challenge.

13.robust (adjective)

Hindi Meaning - मजबूत, शक्तिशाली
English Meaning - strong, powerful.

14.constantly (adverb)

Hindi Meaning - निरंतर, लगातार
English Meaning - continually, continuously, perpetually.

15.evolve (verb)

Hindi Meaning - विकसित होना
English Meaning - develop, progress, advance, expand, transform.

16.Securities and Exchange Board of India (SEBI) (noun)

English Meaning - It was established on April 12, 1992 in accordance with the provisions of the Securities and Exchange Board of India Act, 1992. It is the regulator of the securities and commodity market in India owned by the Government of India.

17.for the sake of (phrase)

English Meaning - in the interest of, for the benefit of, for the advantage of, in the wake of, in the name of, in favour of (without any specific cause or reason).

18.fair (adjective)

English Meaning - just, equitable, non-partisan, unbiased, impartial, honest, upright.

19.securities (noun)

English Meaning - a range of investments (like shares, holdings, equities, bonds).

20.securities (noun)

English Meaning - investments, shares, holdings, equities, bonds; securities (shares) of a company formally admitted to the trading platform of the (Stock) Exchange.

21.securities market (noun)

English Meaning - stock market, equity market, share market (a stock is a security, but every security is not a stock).

22.regulation (noun)

English Meaning - supervision, overseeing, monitoring, inspection; control, direction, guidance.

23.scrutiny (noun)

English Meaning - examination, inspection, investigation.

24.statutory (adjective)

English Meaning - regulated/controlled by statute (rules or laws).

25.statutory body or authority (noun)

English Meaning - it means a non-constitutional body which is set up by a parliament. Statutory bodies are authorized to pass the law and take the decision on the behalf of state or country. Statutory body has official permission for Legislation i.e. process of enacting laws. Cabinet resolution should be passed to establish this body.

26.constitute (verb)

English Meaning - initiate, establish, start, begin, initiate, create, form, organize, put in place.

27.body (noun)

English Meaning - entity, organization, institution, system, structure.

28.stock market (noun)

English Meaning - a place where shares of pubic listed companies are traded; share market, equity market.

29.powerhouse (noun)

English Meaning - a person/organisation/country/state with a lot of energy, power & influence.

30.put in place (phrase)

English Meaning - establish, initiate, set up, start, begin, create, form.

31.in place (phrase)

English Meaning - in order, established, arranged.

32.checks and balances (plural noun)

English Meaning - a system in which all departments of a government organization have right to amend/limit the powers of the other departments in order to avoid dominance of one department.

33.reputation (noun)

English Meaning - good name, position, standing, status, eminence.

34.reliable (adjective)

English Meaning - dependable, trustworthy, authentic, steadfast, well built, well founded.

35.accusation (noun)

English Meaning - charge, allegation.

36.level (verb)

English Meaning - direct a accusation.

37.short-seller (noun)

English Meaning - a person who sells a stock that he/she doesn’t own.

38.short selling (noun)

English Meaning - In SEBI’s words, short selling is the selling of a stock that the seller does not own at the time of trade. Short seller is a person who sells a stock that he/she doesn’t own.

39.Hindenburg Research LLC (noun)

English Meaning - it is an investment research firm with a focus on activist short-selling founded by Nathan Anderson in 2017 and based in New York City.

40.conduct (noun)

English Meaning - management, regulation, running, managing, controlling.

41.ongoing (adjective)

English Meaning - in progress, under way, going on, continuing, happening, current.

42.infrastructure (noun)

English Meaning - the basic physical or organisational structure or framework that a country or organization needs in order to function properly. For a whole nation, it includes all the physical systems such as buildings, roads & railways networks, utilities, etc.

43.Fast-moving consumer goods (FMCG) (noun)

English Meaning - also called consumer packaged goods (CPG) , refer to products that are highly in-demand, sold quickly, and affordable.

44.major (noun)

English Meaning - a major organization/company; conglomerate.

45.alleged (adjective)

English Meaning - supposed, so-called, claimed, professed, reported, ostensible.

46.manipulation (noun)

English Meaning - falsification, misinformation, misreporting, misstatement, misrepresentation.

47.malfeasance (noun)

English Meaning - deception, duplicity, lying, falseness, falsehood, untruthfulness wrongdoing, misconduct (particularly by a public official).

48.cast a shadow on/over (phrase)

English Meaning - to make people feel less happy, to make situation appear less good or hopeful; disappoint, let down, discourage, demoralize, wear down.

49.conflict (noun)

English Meaning - dispute, disagreement.

50.obscure (adjective)

English Meaning - unclear, uncertain, unknown, doubtful, mysterious.

51.offshore (adjective)

English Meaning - registered/situated at foreign country to take advantage of lower taxes or less regulation.

52.tax haven (noun)

English Meaning - a country that imposes/charges/levies low tax rates on certain economic activities, especially to attract wealthy individuals and (foreign) businesses.

53.allegedly (adverb)

English Meaning - ostensibly, supposedly, reportedly, presumably.

54.prominent (adjective)

English Meaning - important, notable, famous, well known.

55.SEBI-regulated (adjective)

English Meaning - controlled by SEBI.

56.claim (verb)

English Meaning - state, declare, insist, affirm, assert, attest (without proof).

57.dormant (adjective)

English Meaning - inactive, passive, inoperative.

58.acceptance (noun)

English Meaning - approval, adoption, integration, welcoming.

59.rebuttal (noun)

English Meaning - denial, counterstatement, counter-argument, disproval.

60.entity (noun)

English Meaning - organization, set-up, outfit, unit.

61.clock (noun)

English Meaning - gain, earn, make, achieve, attain, register, record.

62.unprecedented (adjective)

English Meaning - not done or experienced before.

63.ramification (noun)

English Meaning - consequence, result, aftermath, outcome, effect, aftereffect, implication, repercussion.

64.regulator (noun)

English Meaning - an association/statutory body that supervises a particular business activity.

65.appointee (noun)

English Meaning - one who is appointed to a job/position; representative, delegate, office holder.

66.market manipulation (noun)

English Meaning - an intentional effort to deceive and defraud investors by artificially affecting the supply or demand for a security (tradable financial asset) and driving its price up or down. Those who orchestrate artificial price movements then profit from them at the expense of other investors. It involves the literal manipulation of a financial market for personal gain.

67.influence (verb)

English Meaning - affect, have an effect on, exert influence on, control, determine, pressurize.

68.room (noun)

English Meaning - scope, chance, leeway, freedom, latitude, opportunity (for something to happen).

69.lingering (adjective)

English Meaning - remaining, persisting, lasting, continuing, unending, unrelenting, long-drawn-out, prolonged, protracted, dragging, unabating.

70.in the fitness of things (phrase)

English Meaning - suitable, appropriate, proper, fitting.

71.thorough (adjective)

English Meaning - complete, total, rigorous, in-depth, detailed, extensive, intensive.

72.after all (phrase)

English Meaning - most importantly, above all, ultimately, basically, first and foremost.

73.at stake (phrase)

English Meaning - at issue, at risk; or in question.