In a new development that could shake India’s financial landscape, Hindenburg Report has published a explosive findings alleging that Madhabi Buch, the chairperson of the Securities and Exchange Board of India (SEBI), and her husband were involved in obscure offshore funds linked to the Adani Group. The report, based on whistleblower documents, claims that Buch and her husband held stakes in offshore entities allegedly used in a money-siphoning scandal involving the Adani Group.
Allegations Unveiled: A Damning New Hindenburg Report
Hindenburg’s report arrives 18 months after its initial exposé on Adani, which accused the conglomerate of financial misconduct and led to a massive decline in its stock value. The latest report raises serious questions about SEBI’s impartiality and its regulatory oversight, particularly in light of Buch’s alleged financial connections to entities under investigation.
Web of Offshore Funds: A Conflict of Interest?
According to Hindenburg Report, the Buchs’ investments date back to 2015, prior to Madhabi Buch’s appointment as a whole-time member of SEBI in 2017 and her subsequent elevation to chairperson in March 2022.
The report alleges that weeks before her SEBI appointment, Buch’s husband, Dhaval Buch, requested to transfer their investments into his sole control, possibly to avoid scrutiny due to her new regulatory position.
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Hindenburg Report highlights that these investments were made in offshore funds located in Bermuda and Mauritius, the same entities allegedly utilized by Vinod Adani, brother of Gautam Adani, for market manipulation.
The report provides details of a complex, multi-layered offshore structure that the Buchs reportedly used, raising concerns about the legitimacy and intent behind these financial moves.
One of the key pieces of evidence cited by Hindenburg Report is an account statement dated February 26th, 2018, addressed to Madhabi Buch’s private email. The statement reportedly reveals the intricate structure of the offshore investments, connecting them to the same Mauritius-registered “cell” that Vinod Adani is accused of using for his financial schemes.
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SEBI’s Credibility Under Fire
Hindenburg report suggests that SEBI’s alleged leniency toward the Adani Group’s suspicious offshore shareholders may be influenced by Buch’s personal financial ties to the same entities under investigation. The report further alleges a potential conflict of interest, pointing to Buch’s role in promoting Real Estate Investment Trusts (REITs) in India, a sector that has significantly benefited Blackstone, where her husband serves as a senior advisor.
The report concludes with a damning question: “Conflict or capture? Either way, we do not think SEBI can be trusted as an objective arbiter in the Adani matter.”
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This latest report from Hindenburg is part of a continuing series of allegations against the Adani Group, following a January 2023 report that accused the conglomerate of stock manipulation and financial misconduct. That initial report had a severe impact on Adani’s stock prices, leading to a loss of over $100 billion in market value.
Earlier in the day, Hindenburg shared a cryptic post on social media platform X, hinting at another major report focused on India, which has now materialized in the form of these new allegations against SEBI’s chairperson. Many anticipated that it would be related to some other big business house but it turned out that SEBI is in bitter war with Hindenburg now.
Initially, instead of investigating the Adani, it sent out the notices to Hindenburg and now it looks as if the firm has retaliated.
As this story unfolds, it remains to be seen how SEBI will respond to these serious accusations fro Hindenburg report and whether an independent investigation will be launched to address the potential conflict of interest at the heart of India’s market regulatory body.
