SEBI Chief & Spouse Held Stake in Offshore Funds

The Hindenburg Research report on the Adani Group, which triggered significant controversy, has now extended its allegations to involve Madhabi Puri Buch, the chairperson of SEBI (Securities and Exchange Board of India). According to Hindenburg, Madhabi Puri Buch and her spouse allegedly held stakes in offshore funds that were purportedly linked to the Adani Group.
  
The Hindenburg Report, released in early 2023, levelled serious allegations against the Adani Group, one of India’s largest conglomerates, accusing it of stock manipulation, accounting fraud, and other financial irregularities. The report claimed that the Adani Group had engaged in a complex web of shell companies and offshore entities to inflate its stock prices and obscure its debt levels.
 
Hindenburg Research, known for its in-depth investigations into financial malpractices, claimed that Madhabi Puri Buch and her spouse had financial interests in offshore entities allegedly connected to the Adani Group. These entities are part of the broader web of offshore funds that the Adani Group has been accused of using for questionable financial activities, including market manipulation and money laundering.

 
Shares of Adani Group firms fell by as much as 7%, resulting in a substantial loss of market value. Investors saw approximately ₹53,000 crore erased from their portfolios as the combined market capitalization of 10 Adani stocks dropped to ₹16.7 lakh crore.
 
The allegation raises concerns about a potential conflict of interest, given Buch’s role as the head of SEBI, the regulatory body investigating the Adani Group. If proven true, it could imply that SEBI’s investigation into the Adani Group might be compromised due to the personal financial interests of its chief.
 
The claim that its chairperson has a personal financial connection to the group casts a shadow over the integrity of this investigation. The allegations have sparked a public outcry and prompted demands for an independent investigation into the matter. Politicians and activists have called for Buch to step down or recuse herself from any proceedings involving the Adani Group until the allegations are fully investigated.
 
The allegations by Hindenburg Research against Madhabi Puri Buch and her spouse introduce a new dimension to the already contentious Adani Group investigation. The fallout from these claims is likely to continue, with potential implications for both the Adani Group and the broader Indian financial market.

Ms. S Mohini Ratna - Editor VARINDIA