Hindenburg Research raises new allegations of conflicts of interest and financial misconduct involving Sebi Chairperson Madhabi Puri Buch in the ongoing Adani Group investigation.
In Short:
- Hindenburg Allegations: Accuses Sebi Chief Madhabi Puri Buch of conflicts of interest related to the Adani Group.
- Key Concerns: Claims of investment in a controversial fund and maintaining consulting firms while leading Sebi.
- SEBI's Response: Denies wrongdoing; 23 out of 24 investigations into Adani Group are reportedly complete.
- Hindenburg's Demands: Calls for full transparency and a public investigation into the matter.
Hindenburg Research has escalated its ongoing dispute with India’s stock market regulator, the Securities and Exchange Board of India (Sebi), by making fresh allegations of conflicts of interest and financial misconduct tied to the Adani Group. The U.S.-based short-selling firm has been locked in a public battle with the Adani conglomerate since its explosive report in January last year, which accused the company of corporate malfeasance and stock manipulation.
In its latest statement, Hindenburg criticized Sebi Chairperson Madhabi Puri Buch, claiming that she and her husband have financial ties to questionable investment structures involving Vinod Adani, the brother of Gautam Adani. The firm alleges that Buch’s response to their earlier report essentially admits to these conflicts, which include investing in a Bermuda/Mauritius fund managed by a close associate of her husband.
Hindenburg also accused Buch of operating consulting firms during her tenure at Sebi, raising questions about the transparency and integrity of these business dealings. One of these companies, Agora Advisory Limited (India), is reportedly still generating revenue, which Hindenburg claims poses a conflict of interest given Buch’s role in overseeing investigations into the Adani Group.
The short-seller called for a full and transparent investigation into these issues, urging Buch to publicly disclose all consulting clients and details of her engagements. They also accused Buch of using her personal email for business communications while serving as a Sebi official.
In response, the Buchs and their associated firm, 360-One, 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 its decisions.
Meanwhile, Sebi has defended its investigation into the Adani-Hindenburg matter, stating that 23 out of 24 investigations are now complete, with the final one nearing closure. The regulator has also initiated proceedings against Hindenburg, accusing the firm of misleading disclosures aimed at profiting from short selling.