Allegations by Hindenburg Research against Madhabi Puri Buch, Chairperson of the Securities and Exchange Board of India (SEBI), have sparked concerns about investor confidence. Hindenburg, a US-based short seller, claimed that Buch had previously invested in offshore funds linked to the Adani group.
According to a Zee Business report, Daniel Geltrude, a well-known business and tech analyst, warned that these accusations could significantly damage investor trust. He emphasised that corruption involving offshore funds could lead to a decline in foreign investments. Geltrude also suggested that Buch should consider resigning to avoid further damage. "If the chair is connected to this situation, it will destroy investor confidence in India. People will become sceptical, and this scandal needs to be taken very seriously," he said.
Madhabi Puri Buch and her husband, Dhaval Buch, issued a detailed statement on Sunday, strongly denying the allegations. They shared specific details about their careers, education, and certain investments to refute the claims.
However, Hindenburg responded to their statement on social media platform X (formerly Twitter), stating that the Buchs’ response contained "several important admissions" and raised "numerous new critical questions."
The controversy began on Saturday when Hindenburg, citing whistleblower documents, alleged that the Buchs held stakes in an offshore fund where a significant amount of money was invested by associates of Vinod Adani, brother of Adani group chairman Gautam Adani.
