'Opinion makers like you shouldn't...': Top fund manager schools Chetan Bhagat on Hindenburg, backs Sebi

Hours after author and columnist Chetan Bhagat said there was a need to address US short-seller Hindenburg's charges in a professional manner, former Edelweiss Capital President Vikas Khemani shot back, saying corporate governance standards in India are far better than many developed nations. 

In a tweet, Bhagat on Sunday said if the perception spreads that India's capital markets are compromised, it will affect billions in capital inflows and indirectly millions of future jobs. "Rather than conspiracy theories on who's out to get who, it's vital to address the issues being raised in a professional manner. Not doing so will be a disservice to India."

Bhagat's comments came a day after Hindenburg Research in a latest report claimed that Sebi chairperson Madhabi Buch and her husband had stakes in obscure offshore funds used in the Adani money siphoning scandal. 

Khemani, founder of Carnelian Asset Management, hit back at Bhagat saying the people who preach India governance have far more compromised markets. "Chetan, how much do you know about corporate governance standards in India? I can say being participants they are far better than many developed nations. People who preach us governance have far more compromised markets," he said in a tweet. 

"I am not making the point that our markets are perfect and we don't have issues..but every time, vested interest questions India and her credibility, opinion makers like you shouldn't stand in line to give credence to them...let's SEBi respond...I am sure they are far more worried about the development of India's capital market than you," Khemani added. 

The fund manager said Bhagat should rather question the credibility of global rating agencies who rate India poorly despite having far more better merits than some AAA countries. "We need to get rid of the mindset of questioning ourselves when others point fingers at us. Global regulators have not done 10% of what Sebi has done in let decade," he added.

Former Infosys CFO Mohandas Pai also backed Sebi, calling the report a "character assassination by a vulture fund". "Rubbish allegations aimed at sensationalism. There was an SC-monitored investigation overseen by an Eminent panel - when the vulture fund was fully exposed it throws mud," he said in a tweet. 

Pai also defended Sebi's regulatory processes, stating, "All regulations of SEBI are made after open consultations. The regulations demonstrate collective thinking of market and regulators based on global benchmarks."