US Short Selling Company Accuses SEBI Chief in Adani Case
US short selling company Hindenburg Research has accused the Securities and Exchange Board of India (SEBI) chief Madhabi Puri Buch of having a stake in the offshore entities implicated in the Adani fraud.
Hindenburg cited documents to claim that Buch and her husband had a stake in an offshore fund that received large investments from Gautam Adani’s brother Vinod Adani.
This accusation comes after Hindenburg released a report in January 2023 alleging fraud within the Adani Group. The report triggered a sharp decline in Adani Group shares, leading to a loss of over $150 billion for the conglomerate.
Following the report, the SEBI issued a show cause notice to Hindenburg, alleging that the firm used non-public information from the report to benefit its investors.
Hindenburg responded by sharing a report on its website claiming that documents provided by a whistleblower show that SEBI Chairman Madhabi Puri Buch had a stake in the offshore entities involved in the Adani money laundering scandal.
The report further alleges that the current SEBI chairman and her husband had a stake in the same offshore funds used by Vinod Adani.