SEBI chief’s rebuttal confirms ‘massive conflict of interest’, raises fresh questions: Hindenburg

Hindenburg Research questions Buch's investments, consulting firms, and conflict of interest in Adani group, raising fresh concerns.

Reacting to the Buchs’ rebuttal of their report red-flagging their investments in obscure offshore funds linked to the Adani group and ownership of consulting firms in Singapore and India, Hindenburg Research in a series of posts on X said the clarification contains several important ‘admissions’, raises fresh questions and confirms a ‘massive conflict of interest’.

“Buch’s response now publicly confirms her investment in an obscure Bermuda/Mauritius fund structure, alongside money allegedly siphoned by Vinod Adani. She also confirmed the fund was run by a childhood friend of her husband, who at the time was an Adani director. SEBI was tasked with investigating investment funds relating to the Adani matter, which would include funds Ms. Buch was personally invested in and funds by the same sponsor which were specifically highlighted in our original report. This is obviously a massive conflict of interest,” the firm pointed out.

On Ms. Buch’s remarks that her husband used the consulting entities, starting in 2019 to transact with unnamed “prominent clients in the Indian industry”, Hindenburg asked if these included clients SEBI is tasked with regulating.

Pointing to the promise of a “commitment to complete transparency” in the SEBI chief’s joint statement with her spouse, Hindenburg Research asked if she will publicly release the “full list of consulting clients and details of the engagements, both through the offshore Singaporean consulting firm, the Indian consulting firm and any other entity she or her husband may have an interest in”.

U.S. short-seller Hindenburg Research launched a broadside against market regulator SEBI chairperson Madhabi Buch, alleging she and her husband had stakes in obscure offshore funds used in the alleged Adani money siphoning scandal.

SEBI Chairman Buch and her husband have denied the allegations as baseless and asserted their finances are an open book.

The Adani Group termed the latest allegations malicious and based on manipulation of select public information. The company said it has no commercial relationship with SEBI chairperson or her husband.