SEBI chief called Hindenburg's allegations baseless, said - our financial transactions are like an open book
Hindenburg: Hindenburg has said in its new report that it had released its report on the Adani Group 18 months ago, but SEBI did not take action against the group. However, the SEBI chief has rejected the allegations.
In a recent report by Hindenburg Research, serious allegations have been made against Indian stock market regulator SEBI chief Madhabi Puri Buch and her husband Dhawal Buch. However, the couple has described the report as baseless. In fact, the report that came late on Saturday night alleged that the couple had a stake in the obscure offshore fund used in the alleged Adani money laundering scam.
The latest Hindenburg Research report released on August 10 alleged that SEBI's current chief Madhabi Buch and her husband had stakes in both the obscure offshore funds used in the Adani money laundering scam. Hindenburg has said in its new report that it had released its report on the Adani Group 18 months ago, but SEBI did not take action against the group.
Madhabi Puri Buch and her husband Dhawal reacted to the Hindenburg report. He said that many allegations have been made against us in the Hindenburg report dated August 10, 2024. In reference to these allegations, we would like to state that we strongly deny the baseless allegations and insinuations made in the report. There is no truth in these.
The couple said, 'Our life and financial transactions are like an open book. All the necessary disclosures in the last few years have already been submitted to SEBI, we have no hesitation in disclosing any financial documents.'
Madhabi and Dhawal said that during the investigation, documents have also been given to SEBI that relate to the period when we were not associated with SEBI. Apart from this, we will also issue a detailed statement at the appropriate time to ensure complete transparency. It is unfortunate that Hindenburg Research, against which SEBI has taken action and also issued a show cause notice, has chosen to attempt character assassination.
After releasing the new report, Hindenburg said, "Almost 18 months have passed since our original report on the Adani Group. Sufficient evidence has been presented that the Indian business group (Adani) has been involved in the biggest scam in corporate history. However, despite concrete evidence and more than 40 independent media investigations, SEBI did not take strict action against the Adani Group. Instead of action, SEBI sent us a clear 'show cause' notice in June 2024.
No action is being taken even after providing full details of the Adani Group's black money network in Mauritius. Citing the secret document, Hindenburg Research had said that the SEBI chairperson and her husband had stakes in the offshore entities used in the Adani scam. These entities are allegedly run by Vinod Adani, the elder brother of Adani Group chairman Gautam Adani.
The report alleged that Madhabi Puri Buch transferred her shares to her husband. From April 2017 to March 2022, Madhabi Puri Buch was the chairperson as well as a member of SEBI. She had a 100 percent stake in a consulting firm called Agora Partners in Singapore. Two weeks before being appointed as the chairperson of SEBI on March 16, 2022, she transferred her shares in the company to her husband.
Last year itself, this company has given a big blow to the Adani Group through a report. In January 2023, Hindenburg Research released a report targeting the Adani Group. This report created a stir, as Hindenburg had made many serious allegations against the Adani Group. After the release of the Hindenburg Research report, there was an earthquake in the stock market. Crores of rupees of investors were lost. Most of the shares of Adani Group registered a continuous decline. The financial loss can be estimated from the fact that before the report came out, Gautam Adani was the number two billionaire among the world's rich, but due to negative news, he slipped to number 36.
