Outrage Unfolds: Sebi Chair Linked to Offshore Entities in Adani Scandal – Hindenburg Report Shocks Markets

SEBI Chairperson Denies Hindenburg Research Allegations of Conflict of Interest

US-based short-seller Hindenburg Research has alleged that Securities and Exchange Board of India (SEBI) Chairperson Madhabi Puri Buch and her husband, Dhaval Buch, have stakes in obscure offshore entities linked to the Adani money siphoning scandal. The claims come 18 months after Hindenburg’s initial report on Adani Group. This report accused the conglomerate of operating "the largest con in corporate history" through a network of offshore shell entities in Mauritius. Despite evidence and over 40 independent media investigations supporting these claims, Hindenburg said SEBI has not taken public action against Adani Group. Instead, SEBI sent a "showcause" notice to Hindenburg on June 27, 2024.

Hindenburg further claimed that Madhabi and Dhaval Buch had opened accounts with an Adani-linked offshore fund in 2015. The short-seller also pointed out a conflict of interest during Buch’s tenure at SEBI, noting her husband’s role as a Senior Advisor to Blackstone, which sponsored several real estate investment trusts (REITs) approved by SEBI.

Madhabi Puri Buch and Dhaval Buch have strongly denied the allegations, labeling them as baseless and devoid of truth. They stated that their finances are transparent and all required disclosures have been made to SEBI. They also pledged to release a detailed statement for complete transparency.

The couple criticized Hindenburg Research, suggesting that the allegations were a retaliatory move after SEBI took enforcement action against the firm.

First Published: Aug 10, 2024 | 10:25 PM IST

Original Story https://www.business-standard.com/markets/news/sebi-chair-had-stake-in-offshore-entities-used-in-adani-scandal-hindenburg-124081001383_1.html
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