SEBI Chairperson denies Hindenburg's allegations, accuses it of character assassination
SEBI Chairperson Madhabi Puri Buch and her husband Dhaval Buch, have denied allegations made by US-based short-seller Hindenburg Research. They dismissed the claims as "baseless" and accused Hindenburg of attempting character assassination in response to a show-cause notice issued by SEBI, related to the Adani controversy. Yesterday, Hindenburg published a report claiming the Buchs held stakes in Bermuda and Mauritius-based offshore funds, used by Gautam Adani's brother Vinod Adani "to amass and trade large positions in shares of Adani Group."
Hindenburg's report alleges offshore investments by Buchs
Hindenburg suggested these investments date back to 2015, prior to Madhabi Buch's appointment as a full-time member of SEBI in 2017. The report claims that just weeks before Buch's appointment to SEBI, her husband requested transfer of their investments into his sole control, to avoid scrutiny pertaining to her new regulatory role. The Buchs' investments were allegedly funnelled via a complex, multi-layered offshore structure, thus raising questions about their legitimacy and purpose.
Buchs promise full transparency
In response to Hindenburg's allegations, the Buchs stated, "In the context of allegations made in the Hindenburg Report against us, we would like to state that we strongly deny the baseless allegations and insinuations made in the report. The same are devoid of any truth. Our life and finances are an open book." They further clarified that all required disclosures have been furnished to SEBI over the years, and expressed their willingness to disclose any additional financial documents if requested.
Hindenburg's previous accusations against Adani Group
Hindenburg Research had previously accused Gautam Adani, then the third wealthiest person in the world, of executing the 'biggest con in corporate history,' a charge he denied. The Supreme Court of India later directed SEBI to investigate these allegations against Adani.
