Hindenburg Adani Row: SEBI Chairperson Madhabi Puri Buch Named In Hindenburg Report: Know All About It

New Delhi: Hindenburg, U.S. investment research firm that previously attempted to shake the Adani empire has once again made a startling revelation about the Adani Group of industries. The Hindenburg Research has accused Madhabi Puri Buch, the chairperson of India’s market regulator SEBI (Securities and Exchange Board of India) and her husband of holding stakes in foreign funds linked to Adani Group.

The latest report from Hindenburg targets both Madhabi Puri Buch and her husband.  However, SEBI's chief and her husband, Dhaval, have issued a joint statement, dismissing Hindenburg's allegations as baseless and unfounded. 

In the joint statement released to the media, they said, "In the context of allegations made in the Hindenburg Report dated August 10, 2024 against us, we would like to state that we strongly deny the baseless allegations and insinuations made in the report.”

- Hindenburg has dropped another bombshell. This time, the target is SEBI Chief Madhabi Buch. Hindenburg has claimed that SEBI's chief has close ties with the Adani Group.

- Hindenburg accuses them of not taking strict action in the investigation against the Adani Group, alleging that no investigation was conducted for 18 months.

- Hindenburg Research claims that the investigation against the Adani Group was not conducted impartially.

- Hindenburg Research also stated that despite the evidence, no action was taken against the Adani Group.

- Hindenburg Research also claimed that shares in Bermuda and Mauritius funds were hidden. According to the report, current SEBI Chairperson Madhabi Puri Buch and her husband Dhaval Buch concealed their holdings in the same obscure offshore Bermuda and Mauritius funds that were part of a complex structure linked to Vinod Adani.

- Hindenburg Research also alleges that no action was taken against Adani Group's offshore funds. It claims that money was used in a siphoning scandal, with various funds being utilized for financial manipulation. According to Hindenburg, the Buch couple holds stakes in offshore entities.

- In its latest report, Hindenburg stated that the total wealth of the Buch couple amounts to 10 million dollars. A fund declaration, signed by a key person at IIFL, indicated that the source of their investments was "salary," and the couple's total wealth was estimated at 10 million dollars. The report alleges that, despite the availability of reputable Indian mutual fund products, SEBI Chief Madhabi Buch and her husband chose to invest in a multi-layered foreign fund with lower assets.

- Gautam Adani and Vinod Adani face serious allegations: Hindenburg, citing whistleblower documents, claims that the accused's assets passed through high-risk jurisdictions. These assets were reportedly managed by a company allegedly involved in the scandal. This same unit was run by Adani's directors and was significantly used by Vinod Adani in the alleged Adani cash manipulation scandal. Offshore funds, also known as foreign funds, are those that invest in foreign markets.

Earlier, Hindenburg Research had accused the Adani group of “brazen stock manipulation” and “accounting fraud scheme” in January last year, noting that the company is “pulling the largest con in corporate history”. However, the group completely dismissed these allegations as baseless. The Adani Group has now responded to this latest report as well. Hindenburg's accusations have also raised several important questions, including whether the government will investigate the matter.