Hindenburg Report Claims SEBI Chief Had Stake In Adani Offshore Entities

Hindenburg Research has once again stirred controversy by making fresh against the Adani Group. This time, the focus is on SEBI Chairperson Madhabi Puri Buch and her husband, Dhaval Buch. According to Hindenburg, the couple had hidden stakes in offshore funds linked to the Adani conglomerate.

The report claims that Madhabi Buch and Dhaval Buch opened an account with IPE Plus Fund 1 in Singapore on June 5th, 2015. These offshore funds are allegedly part of a complex structure used by Vinod Adani, Gautam Adani's brother. The Mauritius fund was reportedly set up by an Adani director through India Infoline.

Offshore Funds and Allegations

Hindenburg's report suggests that SEBI's reluctance to act against suspicious offshore shareholders in the Adani Group might be due to Madhabi Buch's involvement with these same funds. "We suspect SEBI's unwillingness to take meaningful action against suspect offshore shareholders in the Adani Group may stem from Chairperson Madhabi Buch's complicity in using the exact same funds used by Vinod Adani," stated Hindenburg.

The US-based short-seller also presented records from the Ministry of Corporate Affairs. These records indicate that Madhabi Buch owns a 99% stake in Agora Advisory, a consulting business where her husband is a director. In 2022, this entity reported $261,000 in revenue from consulting services.

Financial Disclosures and Transparency

The report highlights that Agora Advisory's revenue was 4.4 times higher than Madhabi Buch's disclosed salary at SEBI. Furthermore, since the offshore Singaporean entity is exempt from disclosing financial statements, it remains unclear how much revenue it generates and from whom.

Hindenburg's allegations come a year-and-a-half after they accused Gautam Adani of running "the largest con in corporate history." This new claim adds another layer of complexity to the ongoing scrutiny of the Adani Group and its operations.

The whistleblower documents cited by Hindenburg suggest that both Madhabi Buch and Dhaval Buch were involved in these offshore funds. The timing of their account opening with IPE Plus Fund 1 raises questions about their financial dealings and potential conflicts of interest.

These revelations have sparked debates about transparency and accountability within India's regulatory framework. The involvement of high-ranking officials in such financial activities could undermine public trust in regulatory bodies like SEBI.

The allegations against Madhabi Buch and her husband add to the growing list of controversies surrounding the Adani Group. As investigations continue, it remains to be seen how these claims will impact both SEBI and the conglomerate.

This latest development underscores the need for stringent oversight and transparency in financial markets. Ensuring that regulatory officials are free from conflicts of interest is crucial for maintaining integrity within the system.

As more details emerge, stakeholders will be closely watching how SEBI responds to these serious allegations. The outcome could have significant implications for India's financial regulatory landscape.