On August 10, Hindenburg Research, a US-based investment research firm known for its critical reports, leveled serious allegations against SEBI Chairperson Madhabi Buch and her husband, Dhaval Buch. The firm claimed that the Buchs had undisclosed stakes in offshore entities involved in the Adani Group's alleged money-siphoning activities.
Hindenburg’s latest report came after a morning teaser hinted at significant revelations concerning India. By the end of the day, the firm released the report, alleging that Madhabi Buch and her husband held stakes in obscure offshore funds, which were part of a complex network used by Vinod Adani, a key figure in the Adani Group's financial dealings. These offshore funds, located in Bermuda and Mauritius, have been at the center of the controversy surrounding Adani's business practices.
The report, shared on Hindenburg’s ‘X’ account, cited documents from a whistleblower and investigations by other entities. According to the whistleblower, the Buchs opened an account with IPE Plus Fund 1 in Singapore on June 5, 2015. The source of their investment was reportedly their salary, with their net worth estimated at USD 10 million. Hindenburg suggests that the couple's involvement in these offshore entities may explain the Adani Group’s apparent confidence in avoiding regulatory repercussions.
This isn’t Hindenburg’s first encounter with the Adani Group. In January 2023, the firm published a damning report accusing the conglomerate of stock manipulation and financial fraud. This report led to a dramatic fall in Adani's stock prices, wiping out over USD 100 billion in market value. The timing of the report was particularly damaging, as it was released just two days before a USD 2.5 billion public offering by Adani Enterprises (NS:ADEL).
Despite the serious nature of these allegations, the Adani Group has consistently denied any wrongdoing, dismissing Hindenburg's claims as baseless. The new allegations against SEBI's chairperson have added another layer of complexity to the ongoing scrutiny of Adani's financial practices.
As the controversy deepens, these revelations could have significant implications for SEBI, raising questions about regulatory oversight and the integrity of financial institutions in India.
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