Hindenburg’s allegations against SEBI chief Madhabi Buch

Citing whistleblower documents, US-based short seller Hindenburg Research on Saturday said that Madhabi Buch, chairperson of market regulator SEBI (Securities and Exchange Board of India) and her husband Dhaval Buch, had stakes in offshore entities linked to the Adani Group’s alleged financial misconduct.

In January 2023, Hindenburg Research had accused Gautam Adani, then the third wealthiest person in the world, of carrying out the ‘biggest con in corporate history,’ a charge denied by him. Later that year, the Supreme Court of India directed SEBI to investigate the allegations against Adani.

SEBI, which had been investigating the Adani Group even before the Hindenburg report, had told a Supreme Court-appointed panel that the market regulator was investigating 13 opaque offshore entities that held between 14% and 20% across five publicly traded stocks of the conglomerate. However, It hasn’t stated if two of its incomplete probes have since been completed.

“Madhabi and Dhaval Buch had hidden stakes in the exact same obscure offshore Bermuda and Mauritius funds,” according to this latest Hindenburg revelation.

Madhabi and Dhaval Buch allegedly had stakes in offshore entities connected to the Adani Group’s financial misconduct. These entities were part of a network used by Vinod Adani, Gautam’s elder brother, to siphon money. The impartiality of SEBI is ‘questionable’ due to potential conflicts of interest.

Its investigations into the Adani Group were ‘lenient.’ Concerns raised about the ‘transparency’ of the market regulator’s leadership. Alleged offshore funds were obscure and had complex structures.

Lack of action against Adani Group highlighted as ‘suspicious.’

Offshore funds were central to the Adani money siphoning scandal. Emphasis on the alleged connection between Buch’s personal interests and her regulatory role. Greater scrutiny’ needed into SEBI’s investigations into the Adani Group.