Hindenburg Alleges SEBI Chairperson's Offshore Fund Ties in New Report

Mumbai, India – Hindenburg Research, the U.S.-based short-seller, has released a new report alleging that Madhabi Puri Buch, Chairperson of the Securities and Exchange Board of India (SEBI), and her husband, Dhaval Buch, held stakes in offshore funds that were also used by Vinod Adani, brother of Adani Group Chairman Gautam Adani. The report, published on August 10, 2024, claims these investments were in obscure Bermuda and Mauritius-based entities, raising questions about potential conflicts of interest amidst SEBI's ongoing investigation into the Adani Group. Hindenburg stated, "We find it unsurprising that Sebi was reluctant to follow a trail that may have led to its own chairperson."

The report details that Madhabi Buch and her husband reportedly opened an account with IPE Plus Fund 1 in Singapore in June 2015, with a declared net worth of $10 million. Hindenburg further alleges that in March 2017, weeks before Madhabi Buch's appointment as a Whole-Time Member of SEBI, her husband requested to be the sole authorized person for their investment in Global Dynamic Opportunities Fund (GDOF), a parent fund to IPE Plus Fund 1. The short-seller claims these funds are part of a complex, multi-layered structure allegedly used by Vinod Adani for siphoning money.

SEBI and the Buchs have vehemently denied the allegations, calling them "baseless" and an attempt at "character assassination." In a joint statement, Madhabi Puri Buch and Dhaval Buch asserted, "Our life and finances are an open book. All disclosures as required have already been furnished to Sebi over the years." They clarified that the investment was made in 2015 when they were private citizens, almost two years before Madhabi Buch joined SEBI, and that the fund never invested in any Adani Group company.

The Adani Group has also dismissed Hindenburg's latest claims as "malicious, mischievous and manipulative selections of publicly available information." The conglomerate stated that these were "recycled of discredited claims that have been thoroughly investigated, proven to be baseless and already dismissed by the Hon'ble Supreme Court in January 2024." They reiterated having no commercial relationship with the individuals or matters mentioned in the report.

This new report reignites scrutiny on SEBI's handling of the Adani-Hindenburg matter, which began in January 2023 with Hindenburg's initial allegations of stock manipulation and accounting fraud against the Adani Group. Political figures, including Congress leader Rahul Gandhi, have called for a Joint Parliamentary Committee (JPC) investigation into the matter, questioning SEBI's integrity and demanding accountability. Meanwhile, market experts remain divided, with some terming the report as "sensationalism" lacking substantive evidence.