Hindenburg doubles down, asks SEBI chairperson to reveal client list for offshore firms
PTC News Desk: Hindenburg Research has intensified its dispute with India's stock market regulator Sebi and its chief, Madhabi Puri Buch, citing conflicts of interest and new cases of financial impropriety involving the Adani Group.
In a series of late-night posts on X, Hindenburg challenged SEBI chief Madhabi Buch to reveal the list of consulting clients in her investments in offshore firms linked to the Adani group.
They claimed that her involvement through her husband constituted a significant conflict of interest and that for the purpose of transparency, she should reveal the clients to see if any of them were required to be regulated by the SEBI.
Hindenburg Research also responded to Sebi chief Madhabi Puri Buch's weekend statement, in which she accused the short-seller of trying a "character assassination" against the Buchs.
In a post on its X account, the short-seller stated that the markets regulator's statement "raises numerous new critical questions," and "includes several important admissions."
Hindenburg had earlier published a report on its website saying that the Buchs had 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 the Adani Group".
On Sunday, the Buchs responded to Hindenburg Research's allegations describing them as "baseless". Sebi chairman Madhabi and her husband Dhaval said that the US-based short seller is using character assassination in reaction to the regulator's show-cause order issued in connection with Hindenburg's previous report on Adani.
"It is unfortunate that Hindenburg Research against whom SEBI has taken an Enforcement action and issued a show cause notice has chosen to attempt character assassination in response to the same," they said.
The short-sellers reply to to the Buchs' statement claims that Buch's response "publicly confirms her investment in an obscure Bermuda/Mauritius fund structure, alongside money allegedly siphoned by Vinod Adani." She further revealed that the fund was handled by her husband's childhood friend, who was then an Adani director.
"SEBI was tasked with investigating investment funds relating to the Adani matter, which would include funds Ms Buch WAS PERSONALLY INVESTED IN and funds by the same sponsor which were specifically highlighted in our original report. This is obviously a massive conflict of interest," Hindenburg said.
Hindenburg's reply questions whether the Sebi chief will conduct a "full, transparent, and public investigation" into the allegations raised.
"Buch’s statement promised a “commitment to complete transparency”. Given this, will she publicly release the full list of consulting clients and details of the engagements, both through the offshore Singaporean consulting firm, the Indian consulting firm and any other entity she or her husband may have an interest in?" Hindenburg added.
- With inputs from agencies
