Hindenburg Alleges SEBI Chief's Financial Ties to Adani Offshore Entities
Hindenburg Research's new report accuses SEBI Chief Madhabi Buch and her husband of holding stakes in offshore funds tied to Adani Group's alleged financial misconduct, raising concerns about potential conflicts of interest within India's financial regulatory body.
2024-08-11 05:01:35 - Buzznow
A new report by Hindenburg Research has brought to light serious allegations against Madhabi Puri Buch, the chairperson of the Securities and Exchange Board of India (SEBI), and her husband. According to the report, the couple had stakes in offshore funds linked to the Adani Group’s alleged financial misconduct, raising significant concerns about potential conflicts of interest within India's financial regulatory body.
Hindenburg’s report, based on whistleblower documents, accuses Buch and her husband of owning undisclosed investments in offshore entities located in Bermuda and Mauritius. These same entities were allegedly used by Vinod Adani, brother of Gautam Adani, to manipulate financial markets. The investments reportedly date back to 2015, preceding Madhabi Buch’s appointment to SEBI in 2017 and her elevation to SEBI chairperson in March 2022.
Just before her SEBI appointment, her husband allegedly transferred these investments solely to his control, possibly to avoid any scrutiny related to her new regulatory role. The complexity of their offshore investment structure has led to questions regarding its legitimacy and the reasons behind these investments.
The report also highlights SEBI's perceived leniency towards the Adani Group's offshore shareholders, suggesting that Buch's personal financial connections to these entities may have influenced the regulator’s actions. Additionally, her role in promoting Real Estate Investment Trusts (REITs) in India, which benefited Blackstone—where her husband serves as a senior advisor—further complicates the matter.
Hindenburg concludes by questioning SEBI’s objectivity in the ongoing investigations into the Adani Group, citing these personal financial ties as a potential conflict of interest.
This report is the latest in a series of allegations against the Adani Group, which was previously accused of stock manipulation and financial misconduct by Hindenburg in January 2023, leading to a significant loss in Adani’s market value.
Source: hindustantimes