US investment research firm Hindenburg claimed on Saturday that Securities and Exchange Board of India (Sebi) Chairperson Madhabi Puri Buch held stakes in obscure offshore entities implicated in the Adani money siphoning scandal.
Hindenburg stated, "It has been nearly 18 months since our initial report on the Adani Group, which presented compelling evidence that the conglomerate was involved in 'the largest con in corporate history.' Our investigation unveiled a network of offshore shell entities, primarily based in Mauritius, utilized for suspected billions of dollars in undisclosed related party transactions, undisclosed investments, and stock manipulation. Despite the substantial evidence and over 40 independent media investigations supporting our findings, the Indian securities regulator, Sebi, has not taken any public action against the Adani Group. Instead, on June 27, 2024, Sebi issued us a seemingly 'show cause' notice. This notice did not challenge the factual accuracy of our 106-page analysis but rather criticized the disclosure of our short position—which we had repeatedly disclosed—arguing for more comprehensive disclosure."
Hindenburg had previously hinted at a new India-focused report, more than a year after it accused the Adani Group of insider trading and other stock market violations. The firm's X social media account teased, "Something big soon India." In January 2023, Hindenburg's report on financial irregularities within the Adani Group caused a substantial decline in the company's stock price, which the group had vehemently denied.
