Hindenburg research report claims SEBI invested in Adani firms
New Delhi | Desk: Hindenburg research has made a sensational allegation in a recent report, claiming that SEBI chairperson have stakes in offshore companies connected to the irregularities involving the Adani Group.
The report by the Hindenburg research states that SEBI chairperson Madhabi Puri Buch and her husband Dhawal Buchhas have interests in entities allegedly involved in the financial irregularities associated with Adani group.
The report has sparked a political uproar.
Congress Minister Jairam Ramesh took to X stating “This raises questions on Gautam Adani’s two meetings with Buch in 2022, shortly after she became SEBI chairperson.
It is important to remember that SEBI was investigating Adani’s transactions during that time.”
Following the release of this new Hindenburg Research report, the Congress party has called for the formation of a joint parliamentary committee to investigate the extent of the Adani mega scandal.
अडानी महाघोटाले की जांच SEBI को दी गई.
अब खबर है कि SEBI की चीफ माधवी बुच भी अडानी महाघोटाले में शामिल हैं.
मतलब घोटाले की जांच करने वाला ही घोटाले में शामिल है. है ना कमाल की बात!
साफ है- नरेंद्र मोदी ने जांच के नाम पर अपने ‘परम मित्र’ को बचाने की साजिश रची है.
इस महाघोटाले…
— Congress (@INCIndia) August 11, 2024
Meanwhile, a TMC spokesperson stated, “Given the ongoing investigation under the supervision of the Supreme Court, the SEBI chairperson should be immediately suspended, and a lookout notice should be issued at all airports and through Interpol to prevent her and her husband from leaving the country.”
Both the Adani Group and Madhabi Puri Buch have denied the allegations in the report.
What’s in the Hindenburg Research report?
Hindenburg research report claims that on February 26, 2018, an email sent to Buch’s personal account showed the complete structure of her fund, named “GDOF Cell 90 (IPEplus Fund 1),” registered in Mauritius.
This fund was reportedly part of the complex financial structure used by Vinod Adani.
According to Hindenburg, Buch’s stake in the fund at that time was valued at $872,762.65.
As per the reports, SEBI has not taken any action against any of the other Adani’s suspicious shareholder companies, which are operated by India Infoline’s EM Resurgent Fund and India Focus Fund.
Hindenburg argues that Buch’s involvement with this fund raises concerns about a conflict of interest, putting the transparency and credibility of SEBI’s leadership in question.
Hindenburg’s report further suggests that the offshore funds tied to the Adani Group have unclear and complex structures, complicating investigations into financial irregularities.
The report also points to a possible conflict of interest involving SEBI Chairperson Madhabi Puri Buch’s husband, Dhawal Buch.
It alleges that just weeks before she became SEBI Chairperson, Dhawal Buch emailed a Mauritius fund administrator about their joint investment in the Global Dynamic Opportunities Fund.
He reportedly requested control over their joint account to move assets out of his wife’s account before her appointment, likely due to the political sensitivity of the role.
Hindenburg Research has called for a thorough investigation into SEBI’s handling of the Adani Group case, given these potential conflicts of interest.
Buch and Adani deny allegations
Both Madhabi Buch and her husband denied allegations by the research report.
In response they said,“Our lives and financial accounts are like an open book, and we have provided all necessary information to SEBI over the past few years.”
“We have no objection to disclosing any of our financial documents, including those from before we were in our current positions.”
The Adani Group has issued a statement rejecting Hindenburg’s latest allegations, describing them as malicious and based on publicly available information.
The statement asserts, “We completely deny the allegations made against the Adani Group.”
“This claim is a rehash of baseless accusations that have been thoroughly investigated and were rejected by the Supreme Court in January 2024.”
