Hindenburg Research has intensified its conflict with India's stock market regulator, Sebi, and its chief, Madhabi Puri Buch, by making fresh allegations of financial impropriety and conflicts of interest linked to the Adani Group. The US-based short-sellers accusations follow Buch and her husband's strong denials of any leniency towards Gautam Adani's conglomerate.
Hindenburg, which has been embroiled in a public dispute with the Adani Group since releasing a critical report in January 2023, claimed that Buch and her husband had investments in offshore funds connected to the Adani Group. These funds, according to Hindenburg, were involved in questionable financial activities, potentially creating a conflict of interest for Buch in her role as Sebi chief. Hindenburg's latest statement suggested that these investments were made in collaboration with Vinod Adani, Gautam Adani's brother, further complicating Buch's position given her regulatory responsibilities.
Hindenburg also raised concerns about the transparency of Buch's consulting firms, which she established during her time in Singapore. The firm accused Buch of running these companies, particularly Agora Advisory Limited (India), while serving as Sebi chief. According to Hindenburg, one of these companies is still 99% owned by Buch and continues to generate revenue, raising questions about potential conflicts of interest as she oversees investigations into the Adani Group.
In response to these allegations, Buch and her husband have denied any wrongdoing. They asserted that the fund in question did not invest in Adani securities and that they held only a minor stake with no influence over investment decisions. Sebi, for its part, defended its handling of the Adani-Hindenburg matter, noting that most investigations are complete and that any delays are due to the complexity of enforcement procedures.
Hindenburg's accusations extend to Buch's alleged use of personal email for business dealings under her husband's name while serving as a Sebi Whole Time Member. The firm has called for a full, transparent, and public investigation into these issues, questioning Buch's commitment to transparency in her role as Sebi chief.
Meanwhile, Sebi has initiated its own proceedings against Hindenburg, accusing the firm of making misleading disclosures to profit from short selling. The regulatory battle between Hindenburg and Sebi reflects the ongoing tensions and high stakes involved in the Adani-Hindenburg saga, which continues to draw significant attention both in India and internationally.
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