Adani Group stocks experienced a significant drop of almost 4%, 3,040.90 INR, −146.65 (4.60%) at 9:51 am, following fresh allegations made by US short-seller Hindenburg. The report claimed that the Securities and Exchange Board of India (SEBI) chairperson, Madhabi Puri Buch, along with her husband Dhaval Buch, had vested interests in offshore funds based in Bermuda and Mauritius. According to Hindenburg, these funds were allegedly utilized by Gautam Adanis brother, Vinod Adani, to acquire and trade substantial shares in the Adani Group.SEBI Chiefs Response to the AllegationsAddressing the allegations, SEBI Chief Madhabi Puri Buch clarified that the investment in the fund mentioned by Hindenburg was made in 2015 when she and her husband were private citizens residing in Singapore. This was nearly two years before she assumed her role as a whole-time member at SEBI. She stated, “The decision to invest in this fund was driven by the fact that the Chief Investment Officer, Anil Ahuja, is a childhood friend of Dhaval from their school days and IIT Delhi. With a robust career background including stints at Citibank, JP Morgan, and 3i Group plc, Anil was a trusted investment advisor.”SEBI Chief Madhabi Puri Buch and her husband Dhaval Buch releases a statement in the context of allegations made by Hindenburg on 10th Aug 2024 against them.The investment in the fund referred to in the Hindenburg report was made in 2015 when they were both private citizens… pic.twitter.com/g0Ui18JVNT— ANI (@ANI) August 11, 2024Buch further explained that the consulting firms in question had gone dormant and that this was explicitly disclosed to SEBI. After her husband left Hindustan Unilever in 2019, he began his own practice through these two companies. She added, “When the shareholding of the Singaporean entity transferred to Dhaval, it was duly disclosed not only to SEBI but also to the authorities in Singapore and India.”Hindenburgs RebuttalHindenburg reacted to Buchs statement by asserting that her response “publicly confirms” her involvement in the Bermuda/Mauritius fund structure. The firm highlighted that Buch admitted the fund was managed by a childhood friend of her husband, who, at that time, was an Adani director.SEBI Chairperson Madhabi Buchs response to our report includes several important admissions and raises numerous new critical questions.(1/x) https://t.co/Usk0V6e90K— Hindenburg Research (@HindenburgRes) August 11, 2024
