Hindenburg-Adani Case: Should investors brace for a sell-off on Dalal Street? Expert says…

Investors are facing uncertainty after US-based short seller Hindenburg Research alleged that Securities and Exchange Board of India (SEBI) chairperson Madhabi Puri Buch and her husband, Dhaval Buch, are connected to financial irregularities involving the Adani group. The Buchs have denied these allegations, calling them "baseless" and promising to provide all necessary financial documents to authorities.

Anil Singhvi, Managing Editor of Zee Business, described the situation as a "serious matter for the market" and suggested that market participants will be closely monitoring the situation. According to Zee Business report, he noted that the news could impact investor sentiment and market stability.

The allegations come after SEBI cleared the Adani group of wrongdoing. Hindenburg Research claims that the Buchs had investments in offshore funds linked to the Adani group. These investments, according to Hindenburg, were made in obscure offshore entities in Bermuda and Mauritius, which were allegedly used by Vinod Adani—brother of the group's chairman, Gautam Adani—to manipulate stock prices.

SEBI had previously investigated the Adani group’s shareholding structure due to concerns about foreign holdings in its listed companies. Last year, SEBI reported it was probing 13 offshore entities linked to the group. Hindenburg’s new claims suggest that the Buchs' investments might have been part of these problematic offshore funds.

In response, the Buchs have vehemently denied the allegations, asserting that they have always been transparent about their finances.