Winning Bizness Desk

Mumbai. In a fresh twist to the ongoing controversy involving the Adani Group, short-seller firm Hindenburg Research has leveled new allegations against SEBI (Securities and Exchange Board of India) Chief Madhabi Puri Buch. The firm claims that Buch has partially accepted some of the allegations made in its latest report. Hindenburg's report, which has already caused significant upheaval in India's financial markets, now suggests that Buch and her husband, Dhaval Buch, have connections with the Adani Group.

Hindenburg's Allegations Against SEBI Chief

On the night of August 11, Hindenburg took to social media to assert that SEBI Chief Madhabi Puri Buch and her husband had an investment alliance dating back to 2015, when both were private citizens residing in Singapore. According to Hindenburg, the investments were made in a fund managed by Anil Ahuja, the CEO and a childhood friend of Dhaval Buch from Delhi. The short-seller claims that this connection explains SEBI's alleged inaction against the Adani Group, despite the serious allegations raised in Hindenburg's previous reports.

Hindenburg's social media post further stated that the fund in question had no direct investments in any Adani Group company, whether in bonds, private equity, or derivatives. However, the firm suggests that this connection still raises significant concerns about potential conflicts of interest, given SEBI's role as the regulator of India's financial markets.

The Broader Context: Hindenburg vs. Adani

Hindenburg Research first gained widespread attention in India in January 2023, when it published a scathing report on the Adani Group. The report accused the conglomerate of stock manipulation and accounting fraud, leading to a massive decline in the group's share prices. The market capitalization of the Adani Group plummeted by over $80 billion, with some stocks falling by as much as 83%.

The allegations triggered a massive response from regulators, with SEBI launching an investigation into the Adani Group. However, after months of scrutiny, SEBI cleared the Adani Group of any significant wrongdoing, a decision that was later upheld by the Supreme Court of India. Despite these findings, Hindenburg's allegations have continued to cast a long shadow over the Adani Group and the regulatory environment in India.

SEBI's Response and the Road Ahead

In response to the latest allegations, SEBI Chief Madhabi Puri Buch issued a statement accusing Hindenburg of character assassination and deflecting from the notices issued against the firm for various violations. Buch emphasized that SEBI has always acted in accordance with the law and that her and her husband's investments were made long before she assumed her current role.

As the controversy unfolds, it remains to be seen how these allegations will impact SEBI's credibility and the broader financial landscape in India. With opposition parties already calling for Buch's removal, the situation underscores the challenges faced by regulators in maintaining trust and transparency in volatile financial markets.