Sebi Chief Denies Hindenburg's Allegations: 'Our Lives And Finances...'

Hindenburg Research has accused Madhabi Puri Buch, the chairperson of SEBI, and her husband, Dhaval Buch, of having stakes in offshore funds linked to the Adani Group's alleged financial misconduct.

The American firm suggests that these "obscure offshore funds" were part of the money-siphoning scandal involving Gautam Adani.

Photo Credit: PTI

Past Accusations: Hindenburg's 2023 allegations pointed to offshore funds in Bermuda and Mauritius, reportedly controlled by Gautam Adani's brother, Vinod Adani, which were used to inflate Adani Group's stock prices.

Claims on Buch's Wealth: The short-seller cited an IIFL document estimating the Buch couple's net worth at $10 million, allegedly sourced from their salaries. Hindenburg suggests their financial interests may conflict with Buch's role as SEBI chairperson.

Offshore Fund Connections: Hindenburg alleges that the Buchs were involved in a complex offshore fund structure linked to high-risk jurisdictions, overseen by a company reportedly connected to the Wirecard scandal. This same entity was allegedly used by Vinod Adani in the alleged cash siphoning scheme.

SEBI's Investigation Criticised: Hindenburg referenced the Supreme Court's observation that SEBI had "drawn a blank" in its investigation into Adani's offshore shareholders. The firm insinuates that SEBI's reluctance to probe further might be due to the chairperson's potential involvement.

Teaser from Hindenburg: Before releasing their detailed allegations, Hindenburg hinted at a connection between Adani's confidence and his relationship with SEBI Chairperson Madhabi Buch.

Denial by the Buchs: Madhabi Puri Buch and her husband denied the allegations, stating, "Our life and finances are an open book. All disclosures as required have already been furnished to SEBI over the years." They called the accusations baseless and devoid of truth.

Political Reactions: The Congress party reacted strongly, with Jairam Ramesh demanding the government eliminate any conflicts of interest in SEBI's investigation of the Adani Group. He cited the Expert Committee's findings that SEBI suspected wrongdoing but was constrained by regulations.

Demand for a JPC Probe: Jairam Ramesh also called for a Joint Parliamentary Committee (JPC) to investigate the full scope of the Adani scandal, suggesting that only such a probe could resolve the issues surrounding the regulator's role.

Hindenburg's 2023 Report

The saga began in January 2023 when Hindenburg accused the Adani Group of orchestrating "the largest con in corporate history."

They claimed that the conglomerate used a web of companies in tax havens to inflate revenue and manipulate stock prices, leading to a massive loss of around $150 billion in market value.

The Adani Group has since recovered a large portion of its lost wealth.

(With agency inputs)