Hindenburg claims SEBI head linked to Adani offshore funds

US-based short-seller Hindenburg Research alleged on Saturday that Madhabi Puri Buch, chairperson of India’s market regulator SEBI, had previously invested in offshore funds linked to the Adani Group.

Buch denied the allegations, calling them baseless and promising a detailed response later. Hindenburg’s report has intensified criticism from India’s opposition parties, who are calling for a parliamentary probe into the Adani Group’s financial dealings.

According to Hindenburg, documents show that Buch and her husband were investors in an offshore fund connected to Adani associates. Adani Group dismissed the claims as “red herrings,” asserting that their overseas holdings are transparent.

In response, SEBI has issued a “show cause” notice to Hindenburg for allegedly violating Indian regulations. Hindenburg rejected the allegations as “nonsense,” and the investigation into Adani Group’s practices is ongoing.

The 2023 report by Hindenburg led to a significant stock sell-off and a continued inquiry by SEBI. The Congress party has demanded that the government address potential conflicts of interest in the SEBI investigation and conduct a comprehensive parliamentary probe.

Attribution: Reuters