Mahesh Jethmalani Criticizes Hindenburg Research for Attacking SEBI Chairperson Madhabi Buch
New Delhi, India, August 11: BJP Rajya Sabha MP and senior advocate Mahesh Jethmalani has criticized Hindenburg Research for its recent allegations. Jethmalani stated that the US short seller chose to attack SEBI Chairperson Madhabi Buch instead of responding to a notice from the market regulator.
Jethmalani posted on X, “Hindenburg’s ‘Something big’ is a pathetic damp squib. The announcement prior to its alleged big revelation itself reveals its motive: to destabilize India’s stock markets. The pre-publicity ill behoves a reputed ‘research analyst’. As regards the ‘big’ something, there is nothing new against the Adani group.”
He added that SEBI had issued a notice to Hindenburg seeking information regarding the Adani short sale. Instead of responding, Hindenburg attacked Buch on the grounds of conflict of interest, which Jethmalani dismissed as “prima facie rubbish.”
Jethmalani urged the government to focus on those aiming to harm the economy. He accused Hindenburg of making millions at the expense of Indian retail investors and defaming the Indian regulator. He also criticized left-leaning media outlets for supporting Hindenburg’s claims.
On July 19, Jethmalani had called for a probe into the links between political voices targeting the Adani group and China. He suggested that the Hindenburg report was influenced by Chinese interests.
The Adani group has also rejected Hindenburg’s latest allegations, calling them manipulative and baseless. An Adani Group spokesperson stated, “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.”
SEBI Chairperson Madhabi Buch and her husband issued a joint statement rejecting Hindenburg’s allegations of hidden stakes in offshore entities. They accused Hindenburg of “character assassination” and stated that all required disclosures had been made to SEBI.
Hindenburg had published a report on August 10 alleging that Buch and her husband had hidden stakes in offshore funds used by Vinod Adani. This follows a January 2023 report by Hindenburg accusing the Adani Group of financial irregularities, which led to a significant drop in the company’s stock price. The Supreme Court had directed SEBI to complete its probe into the allegations within three months.
Doubts Revealed
Mahesh Jethmalani -: Mahesh Jethmalani is a Member of Parliament (MP) in India and belongs to the Bharatiya Janata Party (BJP). He is also a well-known lawyer.
Hindenburg Research -: Hindenburg Research is a company that investigates and reports on financial frauds and irregularities. They publish reports about companies they believe are doing something wrong.
SEBI -: SEBI stands for the Securities and Exchange Board of India. It is a government organization that regulates the stock markets in India to protect investors and ensure fair trading.
Chairperson Madhabi Buch -: Madhabi Buch is the head of SEBI. She is responsible for overseeing the functioning of the stock markets and making sure everything is done according to the rules.
BJP -: BJP stands for Bharatiya Janata Party. It is one of the major political parties in India.
MP -: MP stands for Member of Parliament. An MP is a person elected by the people to represent them in the Parliament, which makes laws for the country.
market regulator -: A market regulator is an organization that makes sure the stock markets operate fairly and transparently. In India, SEBI is the market regulator.
Adani group -: The Adani Group is a large Indian company involved in various businesses like energy, resources, logistics, and more. It is one of the biggest companies in India.
allegations -: Allegations are claims or accusations that someone has done something wrong, but these claims have not yet been proven.
Supreme Court -: The Supreme Court is the highest court in India. It makes the final decisions on important legal matters and ensures that laws are followed correctly.
probe -: A probe is an investigation to find out the truth about something. In this case, SEBI is investigating the Adani Group based on Hindenburg’s allegations.
