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Hindenburg Accuses SEBI Chairperson Madhabi Buch of Ties to Adani Scandal through Offshore Funds

New Delhi, August 11: In a fresh wave of allegations, US short-seller Hindenburg Research has accused Madhabi Buch, Chairperson of the Securities and Exchange Board of India (SEBI), and her husband of holding stakes in obscure offshore funds that were allegedly involved in the Adani Group’s money siphoning scandal, reports Vartha Bharati.

Hindenburg’s latest blog post, citing “whistleblower documents,” claims that Buch and her husband had financial interests in offshore funds in Bermuda and Mauritius. These funds are alleged to have been controlled by Vinod Adani, the elder brother of Adani Group Chairman Gautam Adani, and were reportedly used to inflate stock prices and siphon funds.

The US-based research firm criticized SEBI’s lack of progress in investigating Adani’s undisclosed offshore entities, which have been under scrutiny for over 18 months. Hindenburg also highlighted a potential conflict of interest, alleging that despite her regulatory role, Buch had stakes in these offshore funds well before her appointment as SEBI Chairperson in 2022.

According to the allegations, in March 2017, just weeks before Buch’s appointment as SEBI Chairperson, her husband, Dhaval Buch, requested that their investments in the Global Dynamic Opportunities Fund (GDOF) be solely under his control. This move, Hindenburg suggests, was made to obscure their connection to the politically sensitive offshore entities tied to the Adani scandal.

Hindenburg further alleges that these investments, dating back to 2015, were concealed from public disclosure, raising questions about the transparency and integrity of SEBI’s leadership. The firm also criticized SEBI’s investigation into the Adani Group, noting that the regulator had failed to trace the offshore fund holders and suggesting that SEBI might have been reluctant to investigate its own Chairperson.

The Adani Group, which has been under fire since Hindenburg’s initial report in January 2023, has consistently denied all allegations. The group faced significant financial losses following the report, although most of its listed companies have since recovered.

In response to the allegations, Buch and her husband have categorically denied any wrongdoing, stating that their finances are transparent and open to scrutiny. SEBI has yet to issue an official comment on the matter.

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