Hindenburg Claims Indian Regulator Linked to Adani Offshore Funds

In a recent report, U.S.-based short-seller Hindenburg Research has accused Madhabi Puri Buch, chairperson of India's market regulator, of having prior investments in offshore funds linked to the Adani group. The report cites whistleblower documents indicating that Buch and her husband held stakes in an offshore fund that received significant investments from associates of Vinod Adani, brother of Gautam Adani, the group's chairman. Buch has vehemently denied these allegations, labeling them as baseless and asserting that all necessary disclosures and recusals have been properly adhered to. The Securities and Exchange Board of India (SEBI) has stated that it has thoroughly investigated Hindenburg's previous allegations against the Adani group, completing 23 out of 24 investigations by March 2024. Following the 2023 report, the Adani group's stock prices have shown signs of recovery. However, the inquiry into the group remains ongoing, with SEBI having issued notices to six Adani companies for alleged violations of stock market regulations. In a twist, SEBI has also issued a "show cause" notice to Hindenburg Research, accusing the firm of breaching Indian regulations by establishing a short position based on non-public information. Hindenburg dismissed these claims as "nonsense," reiterating its commitment to transparency and accountability in the financial markets. Hindenburg's latest report attempts to connect Buch's past investments with the offshore funds trading in Adani shares, suggesting a potential conflict of interest. The firm has called for further investigation into these findings, emphasizing the need for greater transparency in the matter.