In a bombshell report, Hindenburg Research has accused SEBI Chairperson Madhabi Puri Buch and her husband of holding stakes in offshore funds linked to the Adani Group, allegedly used for a massive money siphoning operation. The report, based on whistleblower documents, has sparked a political firestorm, with Buch vehemently denying the claims as baseless character assassination. This controversy reignites scrutiny on the Adani Group, following earlier accusations of fraud and stock manipulation, and poses challenging questions for India’s financial watchdog and the Modi government.
Hindenburg Research released a report on Aug
ust 10, 2024, accusing Madhabi Puri Buch, the chairperson of the Securities and Exchange Board of India (SEBI), and her husband, Dhaval Buch, of holding stakes in offshore funds tied to the Adani Group. The report claims that these funds were used in a money siphoning scandal involving the Adani Group, citing whistleblower documents as evidence.
ust 10, 2024, accusing Madhabi Puri Buch, the chairperson of the Securities and Exchange Board of India (SEBI), and her husband, Dhaval Buch, of holding stakes in offshore funds tied to the Adani Group. The report claims that these funds were used in a money siphoning scandal involving the Adani Group, citing whistleblower documents as evidence.
The report has been described by Buch as a “character assassination,” and she has strongly denied the allegations, calling them baseless and devoid of truth. The accusations have provided opposition parties in India with new material against the ruling government under Prime Minister Narendra Modi.
This development follows previous allegations by Hindenburg Research in January 2023, which accused the Adani Group of fraud and stock price manipulation. The Supreme Court of India has been involved in overseeing SEBI’s investigation into these allegations, with SEBI having conducted numerous probes into the matter.
The credibility of Hindenburg Research’s report on SEBI and the Adani Group has been called into question by several parties, including Indian government officials and SEBI Chairperson Madhabi Puri Buch herself. Critics argue that the report relies heavily on innuendos and speculative connections, rather than concrete evidence. Rajeev Chandrasekhar, a government official, dismissed the report as not credible, suggesting it was part of a broader strategy to destabilize India’s financial system by attacking SEBI’s integrity. Furthermore, Buch and her husband have accused Hindenburg of character assassination, noting that all required disclosures have been made to SEBI and that their finances are transparent. These responses highlight doubts about the motives and methods of Hindenburg, a firm known for its activist short-selling strategies, which some see as potentially biased due to their financial interests in the outcomes of their reports.