India's opposition has urged the chief markets regulator to step down following allegations from US-based short-seller Hindenburg Research that past investments may have influenced an investigation into the Adani Group. The Adani Group, a diversified Indian conglomerate with interests ranging from ports to power, lost $150 billion in market value last year due to a damning report by Hindenburg, which accused the group of engaging in 'brazen' corporate fraud. The Supreme Court of India directed the Securities and Exchange Board of India (Sebi) to look into these accusations. Subsequently, Hindenburg alleged that Sebi chairperson Madhabi Puri Buch and her husband had investments in offshore funds, which were also reportedly used by a senior member of the Adani family. Buch dismissed these claims as 'baseless', and the Adani Group labeled Hindenburg's latest accusations as 'malicious, mischievous, and manipulative'. However, opposition leader Rahul Gandhi from the Congress party argued that the securities regulator had been 'gravely compromised' and demanded her resignation, along with a joint parliamentary investigation. Gandhi emphasized in a statement that the integrity of Sebi, tasked with protecting the interests of small retail investors, has been severely questioned.
'Honest investors across the country have pressing questions for the government: Why hasn't Sebi chairperson Madhabi Puri Buch resigned yet?' he questioned. Gautam Adani, the founder of the family-run conglomerate and ranked 12th richest person globally according to Bloomberg, refuted Hindenburg's initial allegations, describing the report as a 'deliberate attempt' to harm the group's reputation. Hindenburg also alleged that Vinod Adani, Gautam's elder brother, 'manages a vast network of offshore shell entities' in tax havens such as Mauritius, Cyprus, and several Caribbean islands. The research firm further accused Buch and her husband of having investments in the same offshore funds allegedly used by Vinod Adani. Buch denied this accusation, and Sebi stated that the allegations against the Adani Group had been 'duly investigated', with one investigation still pending. Mahua Moitra, a member of the opposition All-India Trinamool Congress party, argued on social media that there was 'no national interest' in defending a 'compromised regulator who should resign'. Gautam Adani is seen as a close ally of Prime Minister Narendra Modi, and critics argue that this relationship has enabled him to secure business deals unfairly and evade proper scrutiny. Shares of Adani Group companies experienced a decline in early trading on Monday, with Adani Enterprises falling by as much as 5.5% before recovering some losses. Other Adani Group stocks, including Adani Total Gas and Adani Energy Solutions, also saw partial recovery in afternoon trading.
