New Allegations by Hindenburg Against SEBI Chief Madhabi Puri Buch and Adani Group
New Delhi, India – August 12, 2024: The Adani-Hindenburg saga continues as US short seller Hindenburg Research has made fresh allegations against SEBI Chairperson Madhabi Puri Buch and her husband Dhaval Buch. Hindenburg claims they invested in an offshore fund linked to the Adani Group.
Timeline of Events
January 2023
Hindenburg released a report accusing the Adani Group of financial misconduct. Adani stocks fell by up to 10%. The Adani Group called the allegations baseless.
February 2023
A Public Interest Litigation (PIL) was filed in the Supreme Court to investigate Hindenburg’s claims.
March 2023
The Supreme Court asked SEBI to complete its probe within two months and set up a six-member expert panel. The panel found no evidence of manipulation.
May 2023
The court extended SEBI’s deadline to August 14. SEBI later requested an additional 15 days.
August 2023
SEBI reported that 22 out of 24 investigations were final, with two still pending.
November 2023
The Supreme Court reserved its verdict on the allegations.
January 2024
The Supreme Court dismissed a plea for a CBI probe, stating SEBI should handle market regulation. Gautam Adani expressed gratitude for the court’s decision.
June 2024
Adani Group’s share prices recovered.
July 2024
Hindenburg revealed SEBI had issued a show cause notice against them for alleged regulatory violations.
August 2024
Hindenburg accused SEBI Chief Madhabi Puri Buch and her husband of financial misconduct. The Buchs denied the allegations, stating their investments were transparent and unrelated to Adani. Adani Group also rejected the claims.
SEBI urged investors to remain calm and conduct due diligence. Hindenburg raised further questions about Buch’s financial statements and use of personal email for business.
Doubts Revealed
Hindenburg Research -: Hindenburg Research is a company that investigates and reports on financial misconduct. They look into whether companies are doing anything wrong with their money.
SEBI -: SEBI stands for the Securities and Exchange Board of India. It is a government organization that makes sure the stock market and financial markets in India work fairly and properly.
Madhabi Puri Buch -: Madhabi Puri Buch is the Chairperson of SEBI. She is the head of the organization that oversees the financial markets in India.
Adani Group -: The Adani Group is a large company in India that works in many areas like energy, resources, logistics, and agriculture. It is one of the biggest companies in India.
offshore fund -: An offshore fund is a type of investment fund that is set up in a different country than where the investors live. People use these funds for various reasons, including tax benefits.
financial misconduct -: Financial misconduct means doing something wrong or illegal with money, like lying about finances or stealing money.
Supreme Court -: The Supreme Court is the highest court in India. It makes the final decisions on important legal cases in the country.
