US-based firm Hindenburg Research on August 10 alleged that SEBI’s Chairperson Madhabi Buch and her husband had a stake in “both the obscure offshore entities used in the Adani money siphoning scandal.”

After putting out a teaser this morning, hinting at a significant disclosure involving India, Hindenburg by the end of the day published a new report that stated, “We had previously noted Adani’s total confidence in continuing to operate without the risk of serious regulatory intervention, suggesting that this may be explained through Adani’s relationship with SEBI Chairperson, Madhabi Buch.”

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“What we hadn’t realized: the current SEBI Chairperson and her husband, Dhaval Buch, had hidden stakes in the exact same obscure offshore Bermuda and Mauritius funds, found in the same complex nested structure, used by Vinod Adani,” the report by the US hedge firm said.
The link to the entire report was posted on the ‘X’ account of Hindenburg Research.
“New from us,” read the tweet adding “Whistleblower Documents Reveal SEBI’s Chairperson Had Stake In Obscure Offshore Entities Used In Adani Money Siphoning Scandal”
Hindenburg Research said it has made the new allegations based on documents provided by a whistleblower and investigations carried out by other entities.

“Madhabi Buch and her husband Dhaval Buch first appear to have opened their account with IPE Plus Fund 1 on June 5, 2015, in Singapore, per whistleblower documents. A declaration of funds, signed by a principal at IIFL states that the source of the investment is “salary” and the couple’s net worth is estimated at USD 10 million,” the report stated.
In January 2023, Hindenburg published a report accusing the Adani Group of financial irregularities, leading to a significant drop in the company’s stock price. The group at the time had rubbished these claims.

The Hindenburg report alleged stock manipulation and fraud by the conglomerate. The case is related to the allegations (part of a report by Hindenburg Research) that Adani had inflated its share prices. After these allegations were published, there was a sharp fall in the shares of various Adani group companies stocks, reportedly to the tune of over USD 100 billion.

The US short seller’s 2023 January report was published two days before a USD 2.5 billion follow-up public offering was issued by Adani Enterprises.
The Adani group has repeatedly denied all the accusations in the Hindenburg Research report.