New Delhi, August 12, 2024: All ten stocks of the Adani Group suffered significant losses in early trading on Monday, with Adani Energy Solutions plunging by 17%. The sharp decline followed fresh allegations from US short-seller Hindenburg Research, claiming that SEBI Chairperson Madhabi Puri Buch and her husband had undisclosed investments in offshore funds based in Bermuda and Mauritius. These funds were allegedly linked to Vinod Adani, the elder brother of Adani Group Chairman Gautam Adani, and were purportedly used to round-trip funds and inflate stock prices, reported the Vartha Bharati.
The market responded swiftly, with Adani Total Gas falling by 13.39%, NDTV dropping by 11%, and Adani Power declining by 10.94% on the BSE. Other group companies, including Adani Green Energy, Adani Wilmar, Adani Enterprises, and Adani Ports, also saw significant downturns. The overall market impact was reflected in the 30-share BSE Sensex, which fell by 479.78 points to 79,226.13, and the NSE Nifty, which dropped by 155.4 points to 24,212.10.
The Buchs responded to Hindenburg’s claims with a joint statement, describing the allegations as an attack on the credibility of SEBI and an attempt at “character assassination.” They clarified that the investments in question were made in 2015, before Buch’s appointment to SEBI in 2017, and that these funds had become dormant upon her joining the regulatory body.
Hindenburg’s report has intensified scrutiny on SEBI’s investigation into Adani Group’s financial dealings, with the research firm pointing out a potential conflict of interest, given Buch’s personal investments in the same entities under investigation.
The developments have added to the ongoing turbulence surrounding the Adani Group, raising further questions about the integrity of India’s financial regulatory environment.
