Hindenburg Research, known for its investigative reports on corporate malfeasance, released a new report on Saturday alleging that the Securities and Exchange Board of India (SEBI) did not act on its 2023 claims against the Adani Group due to conflicts of interest involving SEBI’s chief, Madhabi Puri Buch.
The report claims that SEBI Chief Madhabi Buch and her husband, Dhaval Buch, had investments dating back to 2015 in offshore funds linked to the Adani Group, specifically in Bermuda and Mauritius. These funds are allegedly part of the network used by the Adani Group for financial manipulation.
NEW FROM US:
Whistleblower Documents Reveal SEBI’s Chairperson Had Stake In Obscure Offshore Entities Used In Adani Money Siphoning Scandalhttps://t.co/3ULOLxxhkU
— Hindenburg Research (@HindenburgRes) August 10, 2024
This new report follows Hindenburg’s explosive January 2023 report, which accused the Adani Group of the “largest con in corporate history” through stock manipulation and financial misconduct. That report led to significant market losses for the Adani Group, wiping out over $100 billion in market valuation.
Hindenburg’s recent post on X hinted at a major revelation, stating “Something big soon India,” leading to high anticipation in financial markets.
Something big soon India
— Hindenburg Research (@HindenburgRes) August 10, 2024
What is Hindenburg Research?
Hindenburg Research, founded by Nathan Anderson, specializes in forensic financial research. The firm investigates accounting irregularities, unethical business practices, and undisclosed financial issues. Named after the 1937 Hindenburg disaster, the firm seeks to uncover “man-made disasters” in the market before they cause harm to investors.
The firm is well-known for its short selling strategy, where it takes positions predicting the fall of company stocks it has investigated. Hindenburg’s team includes former journalists and analysts, and they frequently collaborate with whistleblowers in the financial sector.
2023 Adani Report
Hindenburg first gained prominence in India with its 2023 report on the Adani Group, which accused the conglomerate of adding $100 billion to its valuation through stock price manipulation. The report implicated key figures in the Adani Group, including Gautam Adani’s brothers, in various fraudulent activities.
Hindenburg vs SEBI
In June 2024, SEBI accused Hindenburg of sharing its findings on the Adani Group with a New York-based hedge fund manager, a claim Hindenburg vehemently denied. SEBI’s investigations into the Adani Group’s transactions have so far been inconclusive, leading to criticism from Hindenburg and others.
Hindenburg’s latest report suggests that SEBI’s inaction may be due to personal financial ties between SEBI’s chief and the Adani Group. According to Hindenburg, the Buch family’s investments in the offshore firms linked to Adani were strategically managed to avoid scrutiny.
Hindenburg Research on Sunday said that SEBI chairperson Madhabi Buch’s response to its report raised numerous new critical questions. The firm, which has accused the Buch-led market regulator of not probing its allegations against the Adani Group because Buch had stakes in the conglomerate’s offshore funds, alleged a “massive conflict of interest” on the part of the SEBI chief.
SEBI Chief’s Response
Madhabi Buch and her husband have denied all allegations, releasing a joint statement calling the claims “baseless” and asserting that all necessary financial disclosures have been made to SEBI over the years.
Reacting to Madhabi Buch and her husband Dhaval Buch’s joint statement, the US-based firm asked if the SEBI chief’s consulting clients include those Sebi is tasked with regulating.
The financial community is closely watching the developments, especially as the credibility and future actions of SEBI come under intense scrutiny in light of these serious allegations.
Hindenburg Alleges SEBI Chairperson’s Involvement In Offshore Entities Linked to Adani Scandal
