Sebi Chairperson Denies Hindenburg Accusations

Eighteen months after releasing a report that accused the Adani Group of financial misconduct, the US-based short-seller Hindenburg Research has made fresh allegations against the Chairperson of the Securities and Exchange Board of India (Sebi), Madhabi Puri Buch, and her husband, Dhaval Buch. They claim that the couple has investments in obscure offshore entities linked to the Adani scandal.

According to Hindenburg, despite gathering a mountain of evidence—including over 40 independent media investigations—Sebi has yet to take any public action against the Adani Group. In a statement, they expressed frustration that instead of addressing the issues raised, Sebi sent them a ‘show cause’ notice about the reporting of Hindenburg’s short position.

Hindenburg stated that they had previously highlighted the seemingly cozy relationship between the Adani Group and the Sebi Chairperson. They claimed to have discovered that Madhabi Buch and her husband held hidden stakes in offshore funds based in Bermuda and Mauritius, which were also used by Vinod Adani, Gautam Adani’s brother.

It’s alleged that the Buchs first opened accounts with the IPE Plus Fund 1 on June 5, 2015, with ties to a wealth management firm connected to the Wirecard scandal. Hindenburg’s report suggests that this investment structure was used by Vinod Adani to funnel money into Indian markets, reportedly coming from over-invoiced power equipment sales to the Adani Group.

Furthermore, they claim that Dhaval Buch, since becoming a senior advisor to the investment giant Blackstone in July 2019, has been involved in several significant real estate ventures. During this time, Sebi is said to have changed regulations favorably for private equity firms like Blackstone.

In their response, Madhabi Puri Buch and Dhaval Buch dismissed the accusations from Hindenburg as baseless and lacking truth. They stated that their financial life is transparent and that they are willing to share any relevant documents that authorities may request. They pointed out that Hindenburg has faced enforcement actions from Sebi previously, implying that these accusations might be retaliatory.