'Web of funds': Hindenburg demands SEBI Chief's client list

In the ongoing controversy surrounding SEBI chief Madhabi Puri Buch, we look at the wider demand for an independent probe into Hindenburg's allegations.

A report by the Indian Express shows the web of funds & investments, which Hindenburg alleges show the link between the SEBI chief and the Adani group. SEBI chief Madhabi Puri Buch and her husband, Dhaval Buch's investment in Mauritius-based IPE plus fund 1 is now at the centre of the controversy. According to the report, this fund also had several investments from Vinod Adani and is part of two of the 13 offshore funds which form a part of the web under SEBI's scrutiny.

Hindenburg's latest report said, 'Madhabi Buch's response includes several admissions...and raises numerous new critical questions.' The US firm has demanded the SEBI chairperson's client list. The research firm challenged the SEBI chief to 'commit to a full, transparent and public investigation into these issues'

Hindenburg has also questioned the integrity of SEBI's probe into the Adani group's fraud, with Buch's involvement in such funds.

Stock market reaction

The controversy has had limited reaction from the Indian stock market. Early on Monday, the Sensex index fell as much as 500 points but recovered to close nearly flat. The scenario was the same for Adani group stocks. That suggests investors have broadly moved ahead beyond the controversy. On Tuesday, the index crashed nearly 700 points to below the 79,000 level. However, broader global cues were the driving force.

Still, the saga poses several important questions. Calls for an independent probe have increased, and so have the demands for the SEBI chief to step down.