Hindenburg Research Report highlights: Sebi chief Madhabi Buch, husband Dhaval Buch release detailed statement

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Hindenburg report: Congress MP Rahul Gandhi says integrity of SEBI gravely compromised

Chairperson Madhabi Buch recused herself in matters involving potential conflicts of interest: Sebi.

Hindenburg Research allegations: Sebi says Chairperson Madhabi Buch made relevant disclosures from time to time.

Sebi chief Madhabi Buch, husband Dhaval Buch release detailed statement

The latest allegations by Hindenburg Research are malicious, mischievous, and manipulative selections of publicly available information to arrive at pre-determined conclusions for "personal profiteering with wanton disregard for facts and the law", an Adani Group spokesperson said on Sunday hours after the US-based short seller shot off fresh allegations against the conglomerate.

"We completely reject these allegations against the Adani Group which are a recycling of discredited claims that have been thoroughly investigated, proven to be baseless and already dismissed by the Hon'ble Supreme Court in January 2024," the Adani Group spokesperson informed stock exchanges in a filing dated August 11.

Adani Group reiterated that its overseas holding structure is "fully transparent", with all relevant details disclosed regularly in numerous public documents. The spokesperson said that Adani Group has "absolutely no commercial relationship with the individuals or matters mentioned in this calculated deliberate effort to malign our standing". (ANI)

Reacting to the Hindenburg report, Samajwadi Party spokesperson Ghanshyam Tiwari on Sunday lashed out at the Modi government and said that the tenure of PM Modi will be known for 'Adani-waad'. "The whole world witnessed a different session with different ideologies but the term of PM Modi will be known as 'Adani-waad'. In this Adani-waad, they captured the whole economic system of India in such a way that Gautam Adani (Adani Group) could benefit, it looks like this is the only motive of PM Modi," he said. 

Australia-based AdaniWatch claims to bolster allegations, SEBI chairperson denies charges

On late Saturday night, US-based short seller Hindenburg Research alleged that SEBI Chairperson Madhabi Buch and her husband had stakes in "both the obscure offshore entities used in the Adani money siphoning scandal," a claim subsequently denied by Buch and her husband, who accused Hindenburg of character assassination.

Former Infosys CFO Mohandas Pai has termed the latest allegations by Hindenburg Research against Sebi Chairperson Madhabi Puri Buch as “Character assassination by a Vulture Fund".

The Hindenburg report has disclosed that Madhabi Buch currently owns a 99 percent stake in a consulting firm named Agora Advisory, where her husband, Dhaval Buch, serves as a director.

Trinamool Congress MP Mahua Moitra also took a dig over the allegations, saying that “in true Adani style, even the SEBI chairman is an investor in his group”.

“Crony Capitalism at its finest,” she wrote on X.

Moitra also demanded that the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED) investigate alleged money laundering.

In January 2023, Hindenburg published a report accusing the Adani Group of financial irregularities, leading to a significant drop in the company's stock price. The group at the time had rubbished these claims. The Hindenburg report alleged stock manipulation and fraud by the conglomerate. The case is related to the allegations (part of a report by Hindenburg Research) that Adani had inflated its share prices. After these allegations were published, there was a sharp fall in the shares of various Adani group companies stocks, reportedly to the tune of over USD 100 billion. The US short seller's 2023 January report was published two days before a USD 2.5 billion follow-up public offering was issued by Adani Enterprises. The Adani group has repeatedly denied all the accusations in the Hindenburg Research report. (ANI)

Press Statement from Madhabi Puri Buch, Dhawal Buch on Hindenberg Report 

In the context of allegations made in the Hindenburg Report dated August 10,2024 against us, we would like to state that we strongly deny the baseless allegations and insinuations made in the report. The same are devoid of any truth. Our life and finances are an open book.  All disclosures as required have already been furnished to SEBI over the years. We have no hesitation in disclosing any and all financial documents, including those that relate to the period when we were strictly private citizens, to any and every authority that may seek them. Further, in the interest of complete transparency, we would be issuing a detailed statement in due course.

It is unfortunate that Hindenburg Research against whom SEBI has taken an Enforcement action and issued a show cause notice has chosen to attempt character assassination in response to the same.