Hindenburg Report: Political Storm Over Findings, BJP And Congress Engage In Blame Game

The findings of the Hindenburg report, alleging that SEBI chief Madhabi Buch has connections to offshore firms linked with the Adani group, have sparked a significant political controversy.

The Congress party has called for a Joint Parliamentary Committee (JPC) to investigate the matter, while the BJP has countered by accusing those supporting Hindenburg of attempting to undermine Indian markets.

BJP leader Ravi Shankar Prasad, during a press conference, suggested that George Soros was behind the Hindenburg report, aiming to destabilize the Indian economy. He stated, "We need to ask some serious questions. Who is backing Hindenburg? George Soros, known for his anti-India propaganda, is the primary investor... The Congress Party, in its pathological hatred for Narendra Modi, has now developed hatred for India itself."

In a late-night series of posts on X, Hindenburg Research responded to a joint statement by SEBI chief Madhabi Buch and her husband Dhaval Buch, claiming it raised more questions than it answered. The research firm urged Buch to disclose the client list of those consulting with her on offshore investments to determine if they were connected to firms SEBI regulates. The firm also alleged that Buch had inadvertently confirmed a conflict of interest, revealing that the offshore fund was managed by her husband's childhood friend, a director at the Adani Group.

On August 10, Hindenburg Research, a U.S. short-seller and financial investigation firm, released a report titled "Whistleblower Documents Reveal SEBI's Chairperson Had Stake In Obscure Offshore Entities Used In Adani Money Siphoning Scandal."

This report built on their 2023 allegations against the Adani group for financial misconduct and stock price manipulation. In the 2024 report, they claimed that SEBI chief Madhabi Buch and her husband had investments in offshore funds controlled by Gautam Adani's brother, Vinod Adani. These same offshore entities had been accused of being central to the Adani group's alleged financial fraud.

SEBI chairperson Madhabi Buch responded, calling Hindenburg's claims baseless and asserting that her financial records were fully transparent.