India’s Securities and Exchange Board (SEBI) is under intense scrutiny following new accusations from Hindenburg Research, according to BBC.
Here’s what happened: Over the weekend, Hindenburg Research, a US-based activist investor, hinted at a major revelation. Shortly after, they released a report claiming that SEBI’s chief, Madhabi Puri Buch, had connections to offshore funds tied to the controversial Adani Group. Both Buch and the Adani Group deny any wrongdoing.
Last year, Hindenburg accused the Adani Group, led by Indian billionaire Gautam Adani, of stock manipulation and accounting fraud. This scandal caused a significant drop in the Adani Group’s market value, although it has mostly recovered since. SEBI is still investigating these allegations.
Hindenburg’s new report suggests that Buch’s previous investments in offshore funds might be influencing SEBI’s investigation into the Adani Group. Buch has denied any conflict of interest, stating that her investments were made before joining SEBI and there’s no direct link between her investments and SEBI’s actions.
The allegations led to a significant drop in Adani Group’s market value, though it bounced back later. Hindenburg’s report also raised issues about Buch’s husband’s role with investment firm Blackstone, suggesting it benefited from regulatory changes under Buch’s tenure.
In response, Buch and her husband have stated that their investments were made while they were private individuals and that they followed all disclosure rules. They labeled the report as an attack on SEBI’s credibility.
SEBI has claimed it has thoroughly investigated the Adani Group’s allegations and that Buch has adhered to all required disclosures and recusal norms. The Adani Group has dismissed the accusations as recycled and baseless.
Political leaders, including Rahul Gandhi, have criticized SEBI, calling for a parliamentary inquiry. The opposition is pushing for a closer look at the situation, while the ruling party defends its position.
The controversy continues to unfold, and it seems this story is far from over, with ongoing debates and investigations.