Hindenburg’s New Report Accuses SEBI Chief: Claims SEBI Chief Holds Stake in Same Foreign Fund Where Adani Invested

Hindenburg Research, the American short-seller firm that gained attention by accusing the Adani Group of financial irregularities, has now leveled serious allegations against SEBI (Securities and Exchange Board of India) Chief Madhabi Puri Buch and her husband, Dhaval Buch.

Based on whistleblower documents, Hindenburg claims that the Buch couple holds stakes in a Mauritius-based offshore company called ‘Global Dynamic Opportunity Fund.’ This fund allegedly received billions of dollars from Gautam Adani’s brother, Vinod Adani, which were used to inflate stock prices.

Late on Saturday night, the Buch couple issued a statement denying these allegations. According to PTI, they stated, “We outright reject the baseless claims made in this report. There is no truth to these allegations. Our lives and finances are an open book. “We have provided all information to SEBI over the years.”

Hindenburg’s Accusation: SEBI Chief Did Not Take Action Against Adani Group

Hindenburg accuses SEBI of not taking any action against the Adani Group, despite having evidence and over 40 independent media investigations confirming the claims. They allege that SEBI Chief Madhabi Puri Buch was responsible for investigating these allegations, but instead, SEBI issued a notice to Hindenburg on June 27, 2024. However, SEBI could not find any faults in Hindenburg’s 106-page report on Adani.

In January 2023, Hindenburg had released a report related to Adani Group companies, causing the group’s valuation to drop by ₹7.20 lakh crore. The matter reached the Supreme Court, where the group was given a clean chit. Later, the company’s shares quickly recovered.

Key Points from Hindenburg’s New Report

• It has been nearly 18 months since our report on the Adani Group. We provided solid evidence that the Adani Group was involved in one of the biggest corporate frauds in history.
• Our report exposed a network of offshore, primarily Mauritius-based shell entities used for suspicious undisclosed related party transactions, undisclosed investments, and stock manipulation.
• Despite all the evidence, SEBI took no public action against the Adani Group.
• In July 2024, SEBI issued a show-cause notice to us. We found it strange that SEBI, being a regulator, seemed to be set up to protect fraudulent practices.
• SEBI showed little interest in investigating the parties involved in the fraud. These entities ran a secret offshore shell empire involved in undisclosed related party transactions worth billions of dollars.
• ‘IPE Plus Fund’ is a small offshore Mauritius fund established by an Adani director through India Infoline (IIFL), a wealth management firm linked to the Wirecard scandal.
• Vinod Adani used this structure to invest in Indian markets, which included funds from over-invoicing power equipment to the Adani Group.
• SEBI Chief and her husband, Dhaval Buch, held stakes in obscure offshore Bermuda and Mauritius funds. Vinod Adani also used these funds as part of his structure.
• According to documents, Madhabi Buch and her husband Dhaval Buch first opened an account in IPE Plus Fund-1 in Singapore on June 5, 2015.
• Allegations against Dhaval Buch: Removal of Madhabi’s Name
• Hindenburg alleges that a few weeks before Madhabi became a full-time SEBI member on March 22, 2017, her husband, Dhaval Buch, emailed the Mauritius fund administrator, Trident Trust, stating that both he and his wife had investments in the Global Dynamic Opportunity Fund. Dhaval requested that he be allowed to operate the fund alone, indicating that he wanted to remove his wife’s name ella before her important appointment ella at SEBI.
• Opposition Reacts: Now We Know Why Parliament Session Was Cut Short
• Congress General Secretary Jairam Ramesh posted on social media, saying, “Now we know why the Parliament session was abruptly admitted on August 9.” He also used a Latin phrase, meaning, “Who will guard the guards themselves?” Shiv Sena (Uddhav) MP Priyanka Chaturvedi said, “It is now clear why SEBI did not provide details about Adani’s companies.”