SEBI Chairperson Denies Hindenburg Allegations on Adani Scandal

US short seller Hindenburg Research claims SEBI Chairperson and her husband were involved in offshore entities linked to the Adani scandal. Buch and her husband vehemently deny these allegations and accuse Hindenburg of character assassination. The Supreme Court has ordered SEBI to complete its probe into Adani-related allegations.

On Saturday night, U.S.-based short seller Hindenburg Research accused SEBI Chairperson Madhabi Buch and her husband of having stakes in offshore entities involved in the alleged Adani money siphoning scandal. The claims were quickly denied by Buch, who labeled the allegations as character assassination.

In a statement, Buch and her husband declared, "Our life and finances are an open book. All mandatory disclosures have been provided to SEBI over the years. We welcome any scrutiny of our financial documents, even those from when we were private citizens, by any authority." They criticized Hindenburg, against whom SEBI has taken enforcement action, for attempting to defame them.

Hindenburg's website report drew on various sources to support its claims, including a December 2023 investigation by the non-profit project Adani Watch. According to Hindenburg, this investigation revealed offshore entities controlled by Vinod Adani, brother of Gautam Adani, receiving funds from alleged over-invoicing of power equipment. Hindenburg further alleged that Buch and her husband had hidden stakes in these complex offshore structures.

Additional accusations were supported by a Financial Times investigation, which claimed that the Bermuda-based Global Opportunities Fund, parent to one of the implicated funds, was used by Adani associates to trade shares in the Adani Group. Meanwhile, Adani Watch, led by former Australian Senator Bob Brown, continues to scrutinize Adani's activities globally.

Hindenburg had previously released a report in January 2023 with multiple claims against the Adani Group, leading to a significant decline in Adani stocks. The Supreme Court recently instructed SEBI to finalize its probe into two pending cases concerning Adani allegations within three months, dismissing further probe transfer requests. Earlier this year, the SC also rejected a plea for a review of its verdict demanding SEBI investigate the Adani-Hindenburg case.

(With inputs from agencies.)