A month-and-a-half before he demitted office, former Sebi member KM Abraham wrote an anguished letter to the Prime Minister alleging pressure from Finance Minister Pranab Mukherjee and his advisor Omita Paul to “manage” cases against powerful corporate groups which were being investigated by Sebi.
The issue of regulatory independence has hit a new low, thanks to a 3-way war of words involving Dr KM Abraham, Former Whole Time Member at SEBI; UK Sinha, current SEBI Chairman and the Finance Ministry.
A former SEBI member has alleged that Pranab Mukherjee was trying to undermine the market regulators integrity. CNBC-TV18's Siddharth Zarabi says relationships between the regulator and the finance ministry have hit a new low.