The ongoing clash between US-based short seller Hindenburg Research and Madhabi Buch, Chairperson of India’s market regulatory body SEBI, has intensified. Hindenburg’s recent claims suggest that Buch’s response includes admissions raising several new “critical questions.”
Hindenburg, in a post on social media platform X, asserted that Buch admitted to investing in a Bermuda/Mauritius fund structure linked to allegedly misappropriated funds by Vinod Adani. The fund, according to Hindenburg, was managed by a childhood friend of Buch’s husband, who was an Adani director at the time.
Buch has categorically denied these allegations, labeling them as ‘baseless and insinuative.’ She emphasized that her financial life is transparent, with all required disclosures made to SEBI. “We have no hesitation in disclosing any and all financial documents,” Buch stated, adding that a detailed statement would be issued soon. She accused Hindenburg of character assassination in retaliation for enforcement actions taken against the firm by SEBI.
Hindenburg further accused SEBI of a conflict of interest, as the regulator was investigating funds linked to Adani, which allegedly included those Buch was personally involved in. SEBI, in response, urged investors to remain calm and exercise due diligence.
The Adani Group also responded, dismissing Hindenburg’s allegations as malicious and manipulative, reiterating that similar claims had been rejected by the Supreme Court in March 2023.
Hindenburg’s response additionally scrutinized Buch’s financial disclosures, alleging discrepancies regarding her ownership of consulting firms in India and Singapore.
Amid the controversy, the opposition party Congress has called for a Joint Parliamentary Committee (JPC) to investigate the matter and demanded Buch’s resignation pending investigations.
