Hindenburg Research, a U.S.-based short-seller, has leveled serious allegations against Madhabi Puri Buch, the head of India’s market regulator, the Securities and Exchange Board of India (SEBI). The report, released on Saturday, claims that Buch previously held investments in offshore funds linked to the Adani Group, raising concerns about a potential conflict of interest in the ongoing investigations into the conglomerate.
According to Hindenburg, whistleblower documents suggest that Buch and her husband were investors in a sub-fund of the Bermuda-based Global Opportunities Fund, which allegedly had ties to entities connected to the Adani Group. The report alleges that Buch made these investments in 2015, two years before she joined SEBI. Hindenburg also claims that in 2017, just before Buch was appointed as a full-time SEBI member, her husband requested sole control over the account associated with these investments. In 2018, Buch reportedly sought to redeem her husband’s entire investment in the fund.
In response to these allegations, Buch released a personal statement on Sunday, categorically denying any wrongdoing. She stated that all her financial disclosures have been made in accordance with regulations and that the investments in question were made in a private capacity long before her tenure at SEBI. The regulator also urged investors to remain calm and exercise due diligence before reacting to such reports.
The Adani Group, which has faced multiple allegations from Hindenburg in the past, swiftly rejected the new claims. The conglomerate’s spokesperson dismissed the allegations as “baseless” and a deliberate attempt to damage the company’s reputation. The spokesperson reiterated that the Adani Group had no commercial relationship with the individuals or matters mentioned in the report.
This latest development has reignited calls from India’s opposition parties for a parliamentary investigation into the Adani Group and the potential conflicts of interest involving SEBI’s leadership. The main opposition Congress party has previously accused the Adani Group of having close ties with the ruling Bharatiya Janata Party (BJP), allegations both the company and the party have denied. In light of the new allegations, the Congress party has demanded a thorough inquiry to ensure transparency and eliminate any conflicts of interest in the ongoing SEBI investigation.
The controversy surrounding the Adani Group intensified earlier this year when Hindenburg released a report accusing the conglomerate of stock manipulation and improper use of tax havens, leading to a significant drop in its market value. Despite partial recovery, the group remains under scrutiny, with several of its companies receiving notices from SEBI for alleged violations of stock market rules. Hindenburg’s latest report, which attempts to link the Adani Group’s offshore funds with personal investments made by Buch, further complicates the ongoing investigations.