Hindenburg vs. Adani: New Allegations Against SEBI Chief Madhabi Puri Buch
New Delhi, India – August 11, 2024: The ongoing saga between Hindenburg Research and the Adani Group has taken a new turn. Hindenburg Research, a US-based short seller, has made fresh allegations against SEBI (Securities and Exchange Board of India) Chairperson Madhabi Puri Buch and her husband Dhaval Buch. They are accused of investing in an offshore fund linked to the Adani Group.
Timeline of Events
January 2023
On January 24, 2023, Hindenburg Research released a report titled, “Adani Group: How The World’s 3rd Richest Man Is Pulling the Largest Con in Corporate History.” This report caused Adani Group stocks to drop by up to 10%. The Adani Group responded on January 26, calling the allegations baseless.
February – March 2023
In February, a Public Interest Litigation (PIL) was filed in the Supreme Court to investigate Hindenburg’s claims. On March 2, the Supreme Court asked SEBI to complete its probe within two months. A six-member expert panel was also set up to investigate the matter.
May – August 2023
On May 17, the Supreme Court extended SEBI’s deadline to August 14. SEBI filed an affidavit on August 25, stating that 22 out of 24 investigations were final, with two still pending.
November 2023 – January 2024
On November 24, the Supreme Court reserved its verdict. In January 2024, the court dismissed a plea for a CBI probe, stating that SEBI had sole jurisdiction. Gautam Adani expressed his gratitude on social media, saying, “Truth has prevailed.” By June 2024, Adani Group’s share prices had recovered.
July – August 2024
On July 2, Hindenburg revealed that SEBI had issued a show cause notice against them. On August 10, Hindenburg released a report alleging that SEBI Chief Madhabi Puri Buch and her husband had investments in an offshore firm linked to Adani. The next day, the Buchs released a joint statement calling the allegations baseless. Adani Group also rejected the claims, stating that they had been thoroughly investigated and dismissed by the Supreme Court.
Conclusion
SEBI has urged investors to remain calm and do their due diligence. Experts suggest that markets may be volatile when they open on Monday.
Doubts Revealed
Hindenburg Research -: Hindenburg Research is a company that investigates and reports on financial frauds and wrongdoings by big companies.
SEBI -: SEBI stands for Securities and Exchange Board of India. It is a government organization that regulates the stock market in India to protect investors.
Madhabi Puri Buch -: Madhabi Puri Buch is the Chairperson of SEBI, which means she is the head of the organization that oversees the stock market in India.
offshore fund -: An offshore fund is a type of investment fund that is based in a country different from where the investors live. It is often used to manage money and investments.
Adani Group -: Adani Group is a large Indian company that works in various industries like energy, resources, logistics, and agriculture.
Supreme Court -: The Supreme Court is the highest court in India. It makes the final decisions on important legal matters in the country.
investigation deadlines -: Investigation deadlines are the dates by which an investigation must be completed. In this case, SEBI has been given more time to finish its investigation.
baseless -: Baseless means that something has no evidence or support. When someone says an allegation is baseless, they mean it is not true and has no proof.