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Hindenburg Report: Was There a Conflict of Interest at SEBI's Top?

Hindenburg Report raises serious questions about a potential conflict of interest involving SEBI Chairperson Madhabi Buch and her husband Dhaval Buch. The report alleges their connection to offshore entities tied to the Adani money siphoning scandal.

By Prema Sridevi
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Hindenburg Report

Hindenburg Report: Was There a Conflict of Interest at SEBI's Top?

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Hindenburg Report: Was There a Conflict of Interest at SEBI's Top?

On August 10, 2024, Hindenburg Research released its second report on the Adani Group titled “Whistleblower Documents Reveal SEBI’s Chairperson Had Stake In Obscure Offshore Entities Used In Adani Money Siphoning Scandal”. This follows their previous report on January 24, 2023, which had already stirred significant controversy in India.

While much of the latest report's content is circulating in the public domain, our forthcoming articles will delve into several critical issues. The release of such reports often sparks debates about the motives of the publishers—in this case, Hindenburg Research. The Adani Group has labelled Hindenburg as a discredited short-seller. Additionally, SEBI issued a show cause notice to Hindenburg on June 27, 2024, citing violations of securities laws. In a recent press statement, SEBI Chairperson Madhabi Puri Buch and her husband Dhaval Buch asserted that Hindenburg had been served with this notice due to various infractions. They expressed dismay that Hindenburg has opted to challenge SEBI's credibility and engage in what they termed a character assassination of the SEBI Chairperson rather than address the notice directly.

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In light of these developments, our stories in the coming days will address whether Hindenburg had underlying interests influencing their Adani report. If such interests exist, it raises the question of whether their findings should be taken at face value. Alternatively, even if Hindenburg's motivations are questioned, we must assess whether their allegations are grounded in facts warranting a broader public inquiry.

Before tackling these considerations, we will first examine the specific allegations raised in Hindenburg’s latest report. 

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What Hindenburg's Latest Report Alleges

Hindenburg's recent report raises several allegations involving Madhabi Buch, the current Chairperson of SEBI, and her husband Dhaval Buch. According to Hindenburg, the Buchs held stakes in obscure offshore funds linked to the Adani money siphoning scandal. These funds, based in Bermuda and Mauritius, were similar to those used by Vinod Adani, a key figure in the scandal. Hindenburg Research states that whistleblower documents show that Madhabi and Dhaval Buch opened their account with IPE Plus Fund 1 in Singapore on June 5, 2015. Madhabi Buch joined SEBI as a Whole Time Member in April 2017.

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