The Adani Group on Thursday (Nov 21) reacted to the indictment of chairperson Gautam Adani in New York over his role in an alleged multibillion-dollar bribery and fraud scheme.

The Adani Group on Thursday (Nov 21) reacted to the indictment of chairperson Gautam Adani in New York over his role in an alleged multibillion-dollar bribery and fraud scheme. In a statement, the Adani Group said that the allegations made by the United States (US) Department of Justice and Exchange Commission against the Directors of Adani Green were "baseless and denied." 'The charges in indictment are allegations' The Adani Group said that as stated by the US Department of Justice itself, "the charges in the indictment are allegations and the defendants are presumed innocent unless and until proven guilty." All possible legal recourse will be sought..." Adani Group Spokesperson says, "The allegations made by the US Department of Justice and the US Securities and Exchange Commission against directors of Adani Green are baseless and denied. As stated by the US Department of Justice itself, "the charges in the indictment are… pic.twitter.com/rSuxuHTFUo — ANI (@ANI) November 21, 2024 × Also read | Gautam Adani indicted in US over multimillion dollar bribery: What are the charges? What you should know "The Adani Group has always upheld and is steadfastly committed to maintaining the highest standards of governance," the statement added. In an earlier statement, Adani Group said that its subsidiaries have presently decided not to proceed with the proposed USD-denominated bond offerings. The charges against Gautam Adani American authorities said that Gautam Adani, and seven other defendants, including his nephew Sagar, agreed to pay about $265 million in bribes to Indian government officials to obtain contracts expected to yield $2 billion of profit over 20 years and develop India's largest solar power plant project. Also watch | World DNA: Gautam Adani charged in bribery scheme × Prosecutors also said the Adanis and another executive at Adani Green Energy, former CEO Vneet Jaain, raised more than $3 billion in loans and bonds by hiding their corruption from lenders and investors. 'Numero uno' and 'the big man' As per the indictment, some conspirators referred privately to Gautam Adani with the code names "Numero uno" and "the big man," while Sagar Adani allegedly used his cellphone to track specifics about the bribes. Also read | Adani bribery case- He should be arrested: Rahul Gandhi, other Indian leaders react A report by the news agency Reuters said that Gautam, Sagar, and Jaain were charged with securities fraud, securities fraud conspiracy and wire fraud conspiracy, and the Adanis were also charged in a US Securities and Exchange Commission (SEC) civil case. The other five defendants were charged with conspiring to violate the Foreign Corrupt Practices Act, a US anti-bribery law, and four were charged with conspiring to obstruct justice. (With inputs from agencies)

Adani bribery case | Allegations made by US prosecutors are baseless, denied: Adani Group

The Adani Group is considering selling up to 5 per cent of its stake in both Adani Power and Ambuja Cements, according to a recent report by CNBC Awaaz. This move aims to reduce the conglomerate's substantial debt and manage its leverage more effectively.&nbsp;

As of the end of the June quarter, the Adani Group holds a significant share in these companies: 72.71 per cent in Adani Power and 70.33 per cent in Ambuja Cements. The planned stake sale would see a reduction of these holdings by 5 per cent each. CNBC Awaaz reported that the shares may be sold through mechanisms such as an Offer for Sale or Block Deals. The sale could raise between Rs 15,000 to 20,000 crore, with proceeds likely allocated towards debt repayment.&nbsp;

Following the news, Adani Power's stock experienced a dip of 3.34 per cent, reaching Rs 671.90 by the end of market hours. While Ambuja Cements' share price increased by 1.63 per cent, closing at Rs 639.5. In 2024, Ambuja Cements' stock has risen by nearly 18 per cent, while Adani Power shares have surged by about 30 per cent.&nbsp;

On August 5, Adani Energy Solutions announced that it successfully raised Rs 8,373 crore ($1 billion) through a Qualified Institutional Placement (QIP). The QIP, launched after market hours on July 30, initially had a base deal size of Rs 5,861 crore ($700 million) and included a green shoe option, allowing it to scale up to Rs 8,373 crore ($1 billion), as detailed in the company's exchange filing.&nbsp;

Earlier in July, Adani Group promoters increased their stakes across five of its companies, investing over Rs 23,000 crore in the June quarter. This includes Adani Energy Solutions, Adani Enterprises, Ambuja Cements, Adani Power, and Adani Green Energy. Specifically, the promoter's stake in Ambuja Cements rose by 3.59 percentage points to 70.33 per cent from 66.74 per cent earlier. The Adani Group has not yet commented on this latest development.&nbsp;

The Adani Group is considering selling up to 5 per cent of its stake in both Adani Power and Ambuja Cements, according to a recent report by CNBC Awaaz. This move aims to reduce the conglomerate's substantial debt and manage its leverage more effectively.

The Adani Group is considering selling up to 5 per cent of its stake in both Adani Power and Ambuja Cements, according to a recent report by CNBC Awaaz. This move aims to reduce the conglomerate's substantial debt and manage its leverage more effectively. As of the end of the June quarter, the Adani Group holds a significant share in these companies: 72.71 per cent in Adani Power and 70.33 per cent in Ambuja Cements. The planned stake sale would see a reduction of these holdings by 5 per cent each. CNBC Awaaz reported that the shares may be sold through mechanisms such as an Offer for Sale or Block Deals. The sale could raise between Rs 15,000 to 20,000 crore, with proceeds likely allocated towards debt repayment. Following the news, Adani Power's stock experienced a dip of 3.34 per cent, reaching Rs 671.90 by the end of market hours. While Ambuja Cements' share price increased by 1.63 per cent, closing at Rs 639.5. In 2024, Ambuja Cements' stock has risen by nearly 18 per cent, while Adani Power shares have surged by about 30 per cent. On August 5, Adani Energy Solutions announced that it successfully raised Rs 8,373 crore ($1 billion) through a Qualified Institutional Placement (QIP). The QIP, launched after market hours on July 30, initially had a base deal size of Rs 5,861 crore ($700 million) and included a green shoe option, allowing it to scale up to Rs 8,373 crore ($1 billion), as detailed in the company's exchange filing. Earlier in July, Adani Group promoters increased their stakes across five of its companies, investing over Rs 23,000 crore in the June quarter. This includes Adani Energy Solutions, Adani Enterprises, Ambuja Cements, Adani Power, and Adani Green Energy. Specifically, the promoter's stake in Ambuja Cements rose by 3.59 percentage points to 70.33 per cent from 66.74 per cent earlier. The Adani Group has not yet commented on this latest development.

Adani Group plans to sell 5% stake in Adani Power and Ambuja Cements

In the wake of Hindenburg Reseach's allegations linking Sebi chief Madbhabi Buch to the Adani Group of companies, which the Indian market regulator has been probing, experts have questioned whether the watchdog is competent to conduct such investigations.

Hindenburg Research had alleged that Securities and Exchange Board of India chief Madhabi Buch and her husband had invested in an offshore fund that was also used by Adani Group operatives to inflate stock prices of the group companies. Buch has denied the allegations, but the US-based short-seller firm is sticking to its guns. 
 
Also read:&nbsp;<a href="https://www.wionews.com/business-economy/how-does-hindenburg-research-capitalise-on-its-high-profile-revelations-749977">How does Hindenburg Research capitalise on its high-profile revelations?</a>

Senior market analyst Hemindra Hazari said it is "regrettable" that any investigation by Sebi takes so long to close, and this has been going on for many years.

It is only after the Supreme Court's intervention that certain timelines were given to the regulator to investigate allegations about Adani, he noted, while speaking to WION.

"Now if your investigation takes so long, the question is: Is the regulator competent enough to get all the details or not?"&nbsp;

"And why should it be taking so long? These things should be done quickly and should be resolved quickly," he said.

WATCH:&nbsp;Hindenburg vs SEBI Chief: Hindenburg keeps spotlight on Adani group

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Hazari noted that there are three basic issues in this controversy: 
 
1. Are the documents pertaining to Madhvi Buch's investments and her husband's authentic?

2. Did Buch make the necessary disclosures to Sebi, the government of India, and the Supreme Court of India?

3. Did she recuse herself from the Adani investigations?

Also read:&nbsp;<a href="https://www.wionews.com/india-news/hindenburg-report-reveals-5-billion-mutual-fund-money-invested-in-10-adani-group-companies-749467">Hindenburg report reveals $5 billion mutual fund money invested in 10 Adani Group companies</a>

 
Prof Vikas Singh, economist and author, said the Adani-Hindenburg saga has highlighted critical gaps in corporate governance and regulatory oversight.

"India must expedite investigations, ensuring transparency and accountability," Singh said.

<h2>'Sebi under scrutiny'</h2>

Singh pointed out that the Hindenburg-Adani saga has intensified scrutiny on Sebi's role in regulating India's capital markets.&nbsp;

"Allegations of lax oversight and potential conflicts of interest have eroded public trust in the regulator. While SEBI has initiated investigations, restoring credibility and ensuring investor protection are paramount," Singh told WION.

"The episode underscores the need for a robust regulatory framework and transparent governance within market watchdogs."

(With inputs from agencies)

In the wake of Hindenburg Reseach's allegations linking Sebi chief Madbhabi Buch to the Adani Group of companies, which the Indian market regulator has been probing, experts have questioned whether the watchdog is competent to conduct such investigations.

In the wake of Hindenburg Reseach's allegations linking Sebi chief Madbhabi Buch to the Adani Group of companies, which the Indian market regulator has been probing, experts have questioned whether the watchdog is competent to conduct such investigations. Hindenburg Research had alleged that Securities and Exchange Board of India chief Madhabi Buch and her husband had invested in an offshore fund that was also used by Adani Group operatives to inflate stock prices of the group companies. Buch has denied the allegations, but the US-based short-seller firm is sticking to its guns. Also read: How does Hindenburg Research capitalise on its high-profile revelations? Senior market analyst Hemindra Hazari said it is "regrettable" that any investigation by Sebi takes so long to close, and this has been going on for many years. It is only after the Supreme Court's intervention that certain timelines were given to the regulator to investigate allegations about Adani, he noted, while speaking to WION. "Now if your investigation takes so long, the question is: Is the regulator competent enough to get all the details or not?" "And why should it be taking so long? These things should be done quickly and should be resolved quickly," he said. WATCH: Hindenburg vs SEBI Chief: Hindenburg keeps spotlight on Adani group × Hazari noted that there are three basic issues in this controversy: 1. Are the documents pertaining to Madhvi Buch's investments and her husband's authentic? 2. Did Buch make the necessary disclosures to Sebi, the government of India, and the Supreme Court of India? 3. Did she recuse herself from the Adani investigations? Also read: Hindenburg report reveals $5 billion mutual fund money invested in 10 Adani Group companies Prof Vikas Singh, economist and author, said the Adani-Hindenburg saga has highlighted critical gaps in corporate governance and regulatory oversight. "India must expedite investigations, ensuring transparency and accountability," Singh said. 'Sebi under scrutiny' Singh pointed out that the Hindenburg-Adani saga has intensified scrutiny on Sebi's role in regulating India's capital markets. "Allegations of lax oversight and potential conflicts of interest have eroded public trust in the regulator. While SEBI has initiated investigations, restoring credibility and ensuring investor protection are paramount," Singh told WION. "The episode underscores the need for a robust regulatory framework and transparent governance within market watchdogs." (With inputs from agencies)

Hindenburg vs Adani and Sebi chief Madhabi's role: Is watchdog competent to probe? Experts weigh in

An application filed in the Supreme Court on Tuesday (Aug 13) stated that the latest allegations by Hindenburg Research against Securities and Exchange Board of India (SEBI) Chairperson Madhabi Buch have created an “atmosphere of doubt,” making it essential for the court to complete its investigation into the Adani Group and disclose its findings.

Petitioner, advocate Vishal Tiwari, reminded that the Supreme Court, in its judgment on January 3, had given SEBI three months to complete 24 investigations into Hindenburg’s earlier report accusing the Adani Group of share price manipulations and violations of securities law.

SEBI completed most of its investigations into the Adani Group, with only two pending due to required information from external sources. Given recent developments, the application urges the court to set a specific deadline for concluding these final probes.

Also read:&nbsp;<a href="https://www.wionews.com/india-news/hindenburg-report-ex-finance-ministry-official-urges-nirmala-sitharaman-to-probe-sebi-chief-madhabi-buch-749633">Ex-FinMin official asks Sitharaman to probe SEBI chief over Hindenburg report</a>

The application said, “It is important in the public interest and for the sake of the Investors who lost their funds after the publication of the Hindenburg report in 2023 against Adani Group. The right to know about the investigations led by SEBI and its conclusions are essential for the benefit of investors.”

Tiwari referred to Hindenburg's claims that SEBI chief Madhabi Buch and her husband had financial ties to offshore funds allegedly involved in the Adani Group's financial misconduct.

The report cited “whistleblower documents”.

Notably, the report comes a year and a half after Hindenburg’s damaging report on the Adani Group that had far-reaching consequences, including the cancellation of the company’s flagship ₹20,000 crore (23,82,044.00 USD) follow-on public offer.

The application alleged, “Hindenburg claimed in a blog post that 18 months after its preliminary report on Adani, the Securities and Exchange Board of India (SEBI) has shown an unexpected lack of interest in investigating Adani’s alleged web of undisclosed Mauritius and offshore shell entities.”&nbsp;

According to Hindenburg, Tiwari said, an announcement of funds signed by a principal at IIFL stated that the source of the investment was salary, and the couple’s net worth was estimated at $10 million. Hindenburg claimed that just weeks before her appointment as SEBI chairperson in March 2017, Madhabi Buch's husband requested sole control over their offshore accounts from Mauritius fund administrator Trident Trust.

<a href="https://www.wionews.com/business-economy/wholl-watch-the-watchdog-did-sebi-chief-madhabi-buch-fail-to-disclose-adani-links-recuse-from-probes-749348" target="_blank">Also read |&nbsp;Who'll watch the watchdog? Did SEBI chief Madhabi Buch fail to disclose Adani links, recuse from probes?</a>

The email, allegedly obtained from a whistleblower, appeared to indicate an attempt to move the assets out of his wife’s name ahead of her politically sensitive appointment.

"The SEBI chief has dismissed the allegations as unfounded. While the court has ruled that third-party reports are inadmissible, the claims have nonetheless created public and investor uncertainty. Under these circumstances," the application said.

(With inputs from agencies)

An application filed in the Supreme Court on Tuesday (Aug 13) stated that the latest allegations by Hindenburg Research against Securities and Exchange Board of India (SEBI) Chairperson Madhabi Buch have created an “atmosphere of doubt,” making it essential for the court to complete its investigation into the Adani Group and disclose its findings.

An application filed in the Supreme Court on Tuesday (Aug 13) stated that the latest allegations by Hindenburg Research against Securities and Exchange Board of India (SEBI) Chairperson Madhabi Buch have created an “atmosphere of doubt,” making it essential for the court to complete its investigation into the Adani Group and disclose its findings. Petitioner, advocate Vishal Tiwari, reminded that the Supreme Court, in its judgment on January 3, had given SEBI three months to complete 24 investigations into Hindenburg’s earlier report accusing the Adani Group of share price manipulations and violations of securities law. SEBI completed most of its investigations into the Adani Group, with only two pending due to required information from external sources. Given recent developments, the application urges the court to set a specific deadline for concluding these final probes. Also read: Ex-FinMin official asks Sitharaman to probe SEBI chief over Hindenburg report The application said, “It is important in the public interest and for the sake of the Investors who lost their funds after the publication of the Hindenburg report in 2023 against Adani Group. The right to know about the investigations led by SEBI and its conclusions are essential for the benefit of investors.” Tiwari referred to Hindenburg's claims that SEBI chief Madhabi Buch and her husband had financial ties to offshore funds allegedly involved in the Adani Group's financial misconduct. The report cited “whistleblower documents”. Notably, the report comes a year and a half after Hindenburg’s damaging report on the Adani Group that had far-reaching consequences, including the cancellation of the company’s flagship ₹20,000 crore (23,82,044.00 USD) follow-on public offer. The application alleged, “Hindenburg claimed in a blog post that 18 months after its preliminary report on Adani, the Securities and Exchange Board of India (SEBI) has shown an unexpected lack of interest in investigating Adani’s alleged web of undisclosed Mauritius and offshore shell entities.” According to Hindenburg, Tiwari said, an announcement of funds signed by a principal at IIFL stated that the source of the investment was salary, and the couple’s net worth was estimated at $10 million. Hindenburg claimed that just weeks before her appointment as SEBI chairperson in March 2017, Madhabi Buch's husband requested sole control over their offshore accounts from Mauritius fund administrator Trident Trust. Also read | Who'll watch the watchdog? Did SEBI chief Madhabi Buch fail to disclose Adani links, recuse from probes? The email, allegedly obtained from a whistleblower, appeared to indicate an attempt to move the assets out of his wife’s name ahead of her politically sensitive appointment. "The SEBI chief has dismissed the allegations as unfounded. While the court has ruled that third-party reports are inadmissible, the claims have nonetheless created public and investor uncertainty. Under these circumstances," the application said. (With inputs from agencies)

Hindenburg Vs SEBI: Supreme Court plea seeks directive to complete Adani Group probe

Sebi chief Madhabi Buch and Adani vs Hindenburg row:&nbsp;An independent judicial panel should probe the alleged links between Adani group and Sebi chairperson Madhabi Puri Buch, said former finance ministry secretary EAS Sarma, who had written to the finance minister after fresh allegations were made by Hindenburg Research, in an exclusive chat with WION on Tuesday (Aug 13).&nbsp;

Hindenburg Research alleged that Securities and Exchange Board of India chairperson Madbhabi Buch and her husband had investments in an offshore fund that was linked to Adani, even as Sebi under her leadership&nbsp;was probing earlier allegations made by the US-based activist short-seller firm.&nbsp;

Questions are being raised about whether Buch properly disclosed her investments to Adani-linked funds. In two separate statements, Buch and her husband defended their investment record.

"The Sebi chairman, or any member, if they make any disclosure, that should be to the ministry of finance...and cabinet committee on appointments which appoints them. She cannot give a clean chit to herself," Sarma told WION. "This is a matter that requires further enquiry".

"Did she make a disclosure to the Ministry of Finance? Was the cabinet committee on appointments and the cabinet made aware of all this? This is much more important."

<h2>Sarma explains his reasons for seeking a judicial probe into Madhabi Buch-Adani links</h2>

"Once there is a doubt like this, somebody has to investigate," Sarma said. "Can Sebi do that? No, it can't," he said, pointing out that regulatory authorities have recently been "compromised," and their integrity was under scrutiny. "People are losing credibility in some of these institutions."

Sarma suggested an independent judicial commission, whose head should be nominated by the Chief Justice of India, to conduct the probe in a time-bound manner and submit the report to parliament.

<a href="https://www.wionews.com/videos/hindenburg-vs-sebi-chief-saga-hindenburg-allegations-invoke-chandra-kochars-case-749589" target="_blank">Watch |&nbsp;Hindenburg vs SEBI Chief Saga: Hindenburg allegations invoke Chandra Kochar's case</a>

<iframe allowfullscreen="" autoplay="1" frameborder="0" height="350" src="https://www.wionews.com/videos/hindenburg-vs-sebi-chief-saga-hindenburg-allegations-invoke-chandra-kochars-case-749589/embed" width="560"></iframe>

<h2>'Shadow economy of offshore shell companies flourishing'</h2>

Sarma pointed out that the larger issue here is the shadow economy of shell companies flourishing in the absence of regulation.

"I have written many times to the finance minister...about a shadow economy actually flourishing outside India. Many overseas shell companies have been set up. Some of these business houses are cashing their illicit wealth in these overseas shell companies," Sarma told WION.

"They're using them to evade taxes... and also probably to manipulate the stock market."

He pointed out that there's&nbsp;no proper definition of a shell company available in India, unlike in the US and Europe, which led to a legislative gap.

"In the companies act, in the prevention of money laundering legislation and in Sebi regulations, everywhere you should define it...I think they appointed a task force but it never saw the light of the day. They've deliberately left a legislative gap that has given a cover for these overseas shell companies to operate."

Noting that there was a 2014 regulation that foreign portfolio investors should reveal 'beneficial ownership' of their funds, he said that in 2018, "for very strange reasons," Sebi relaxed it, "making it easy for FPIs to hide their beneficiary owners."

He pointed out there were some investigations into Adani-linked companies in the past after the first Hindenburg report. "We don't know what really happened."

Sarma highlighted in 2022, the Department of Economic Affairs issued an order further relaxing how shell companies operate. "It literally made it easy for people to stash money in these companies and then round-trip it via third countries to India."

He pointed out that a former chairman of Sebi joined the board of the Adani group,&nbsp;which had raised eyebrows.

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Hindenburg vs SEBI: 'The accusations made against the chairperson of SEBI are only accusations, they are not yet proven' 
 
I have written many times to the finance minister and others about the shadow economy flourishing outside India. Many overseas shell companies have been set… <a href="https://t.co/ROpYYbotwb">pic.twitter.com/ROpYYbotwb</a>
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<h2>Sarma's letter to Finance Minister Sitaraman</h2>

Sarma's exclusive comments to WION came after he wrote a letter to Finance Minister Nirmala Sitaraman seeking a&nbsp;judicial probe into claims made&nbsp;by Hindenburg Research against Sebi chief Madhabi&nbsp;Buch.&nbsp;

In the letter, Sarma highlighted Buch's 'conflict of interest' concerning Adani, adding that Sebi should conduct an impartial probe into the previous allegations made by Hindenburg too.

"If the accusations made by Hindenburg are factually found to be correct, all investigations conducted during the last few years by the stock market regulator on external manipulation of stock market indices by a few corporate entities through their benami agencies need to be subject to a re-investigation," said Sarma in the letter.

"Such accusations should wake up the powers that be to refrain from interfering with the independence of any statutory institution for that matter, as such interference will erode public trust and credibility of that institution," he added.&nbsp;

<a href="https://www.wionews.com/india-news/hindenburg-report-ex-finance-ministry-official-urges-nirmala-sitharaman-to-probe-sebi-chief-madhabi-buch-749633">Also read |&nbsp;Hindenburg report: Ex-Finance Ministry official urges Nirmala Sitharaman to probe SEBI chief Madhabi Buch</a>

<h2>Madhabi Buch- Adani link: Oppn leader Rahul Gandhi demands probe; petition filed in Supreme Court</h2>

Earlier, Rahul Gandhi, India's Leader of Opposition, demanded a Joint Parliamentary Committee (JPC) inquiry into the claims made by Hindenburg. 
 
He asked who would be held responsible if investors were to lose their hard-earned money. “Is the Prime Minister of India responsible? Is Madhabi Buch responsible, or is Mr Adani responsible? It’s slowly becoming crystal clear why PM [Narendra] Modi is against a JPC looking into this matter,” said Gandhi.&nbsp;

<a href="https://www.wionews.com/business-economy/wholl-watch-the-watchdog-did-sebi-chief-madhabi-buch-fail-to-disclose-adani-links-recuse-from-probes-749348" target="_blank">Also read |&nbsp;Who'll watch the watchdog? Did SEBI chief Madhabi Buch fail to disclose Adani links, recuse from probes?</a>

On Tuesday (Aug 13), a petition was filed in the Supreme Court, asking it to direct the completion of a&nbsp;probe into Adani that it had ordered after Hindenburg made the first allegations. The petition said the claims by Hindenburg create&nbsp;an ‘atmosphere of doubt’.&nbsp;

The petitioner, advocate Vishal Tiwari, highlighted that the apex court had on January 3 given Sebi three months to complete 24 probes into Hindenburg’s earlier report accusing the Adani Group of stock price inflation and other violations of securities law.

(With inputs from agencies) 
&nbsp;

Sebi chief Madhabi Buch and Adani vs Hindenburg row: An independent judicial panel should probe the alleged links between Adani group and Sebi chairperson Madhabi Puri Buch, said former finance ministry secretary EAS Sarma, who had written to the finance minister after fresh allegations were made by Hindenburg Research, in an exclusive chat with WION on Tuesday (Aug 13).

Sebi chief Madhabi Buch and Adani vs Hindenburg row: An independent judicial panel should probe the alleged links between Adani group and Sebi chairperson Madhabi Puri Buch, said former finance ministry secretary EAS Sarma, who had written to the finance minister after fresh allegations were made by Hindenburg Research, in an exclusive chat with WION on Tuesday (Aug 13). Hindenburg Research alleged that Securities and Exchange Board of India chairperson Madbhabi Buch and her husband had investments in an offshore fund that was linked to Adani, even as Sebi under her leadership was probing earlier allegations made by the US-based activist short-seller firm. Questions are being raised about whether Buch properly disclosed her investments to Adani-linked funds. In two separate statements, Buch and her husband defended their investment record. "The Sebi chairman, or any member, if they make any disclosure, that should be to the ministry of finance...and cabinet committee on appointments which appoints them. She cannot give a clean chit to herself," Sarma told WION. "This is a matter that requires further enquiry". "Did she make a disclosure to the Ministry of Finance? Was the cabinet committee on appointments and the cabinet made aware of all this? This is much more important." Sarma explains his reasons for seeking a judicial probe into Madhabi Buch-Adani links "Once there is a doubt like this, somebody has to investigate," Sarma said. "Can Sebi do that? No, it can't," he said, pointing out that regulatory authorities have recently been "compromised," and their integrity was under scrutiny. "People are losing credibility in some of these institutions." Sarma suggested an independent judicial commission, whose head should be nominated by the Chief Justice of India, to conduct the probe in a time-bound manner and submit the report to parliament. Watch | Hindenburg vs SEBI Chief Saga: Hindenburg allegations invoke Chandra Kochar's case 'Shadow economy of offshore shell companies flourishing' Sarma pointed out that the larger issue here is the shadow economy of shell companies flourishing in the absence of regulation. "I have written many times to the finance minister...about a shadow economy actually flourishing outside India. Many overseas shell companies have been set up. Some of these business houses are cashing their illicit wealth in these overseas shell companies," Sarma told WION. "They're using them to evade taxes... and also probably to manipulate the stock market." He pointed out that there's no proper definition of a shell company available in India, unlike in the US and Europe, which led to a legislative gap. "In the companies act, in the prevention of money laundering legislation and in Sebi regulations, everywhere you should define it...I think they appointed a task force but it never saw the light of the day. They've deliberately left a legislative gap that has given a cover for these overseas shell companies to operate." Noting that there was a 2014 regulation that foreign portfolio investors should reveal 'beneficial ownership' of their funds, he said that in 2018, "for very strange reasons," Sebi relaxed it, "making it easy for FPIs to hide their beneficiary owners." He pointed out there were some investigations into Adani-linked companies in the past after the first Hindenburg report. "We don't know what really happened." Sarma highlighted in 2022, the Department of Economic Affairs issued an order further relaxing how shell companies operate. "It literally made it easy for people to stash money in these companies and then round-trip it via third countries to India." He pointed out that a former chairman of Sebi joined the board of the Adani group, which had raised eyebrows. Hindenburg vs SEBI: 'The accusations made against the chairperson of SEBI are only accusations, they are not yet proven' I have written many times to the finance minister and others about the shadow economy flourishing outside India. Many overseas shell companies have been set… pic.twitter.com/ROpYYbotwb — WION (@WIONews) August 13, 2024 × Sarma's letter to Finance Minister Sitaraman Sarma's exclusive comments to WION came after he wrote a letter to Finance Minister Nirmala Sitaraman seeking a judicial probe into claims made by Hindenburg Research against Sebi chief Madhabi Buch. In the letter, Sarma highlighted Buch's 'conflict of interest' concerning Adani, adding that Sebi should conduct an impartial probe into the previous allegations made by Hindenburg too. "If the accusations made by Hindenburg are factually found to be correct, all investigations conducted during the last few years by the stock market regulator on external manipulation of stock market indices by a few corporate entities through their benami agencies need to be subject to a re-investigation," said Sarma in the letter. "Such accusations should wake up the powers that be to refrain from interfering with the independence of any statutory institution for that matter, as such interference will erode public trust and credibility of that institution," he added. Also read | Hindenburg report: Ex-Finance Ministry official urges Nirmala Sitharaman to probe SEBI chief Madhabi Buch Madhabi Buch- Adani link: Oppn leader Rahul Gandhi demands probe; petition filed in Supreme Court Earlier, Rahul Gandhi, India's Leader of Opposition, demanded a Joint Parliamentary Committee (JPC) inquiry into the claims made by Hindenburg. He asked who would be held responsible if investors were to lose their hard-earned money. “Is the Prime Minister of India responsible? Is Madhabi Buch responsible, or is Mr Adani responsible? It’s slowly becoming crystal clear why PM [Narendra] Modi is against a JPC looking into this matter,” said Gandhi. Also read | Who'll watch the watchdog? Did SEBI chief Madhabi Buch fail to disclose Adani links, recuse from probes? On Tuesday (Aug 13), a petition was filed in the Supreme Court, asking it to direct the completion of a probe into Adani that it had ordered after Hindenburg made the first allegations. The petition said the claims by Hindenburg create an ‘atmosphere of doubt’. The petitioner, advocate Vishal Tiwari, highlighted that the apex court had on January 3 given Sebi three months to complete 24 probes into Hindenburg’s earlier report accusing the Adani Group of stock price inflation and other violations of securities law. (With inputs from agencies)

Hindenburg vs Adani: Sebi chief Madhabi's links need judicial probe, ex-official EAS Sarma tells WION

In the ongoing Hindenburg saga, the latest is an application made to the Supreme Court, requesting that SEBI finish the ongoing investigations into the Adani group of companies. This comes after the US-based short seller's most recent report, which alleged a conflict of interest involving SEBI chairperson Madhabi Puri Buch.

Vishal Tiwari has submitted the latest plea. Tiwari was the petitioner in the 2023 lawsuits that sought an inquiry by the SIT or CBI into the claims made by Hindenburg in January 2023. Back then, Hindenburg had published a scathing report about the Adani group's alleged stock market manipulation.

The supreme court had rejected the request for a CBI/SIT probe in January this year, supporting the SEBI's inquiry. Although the court rejected the petitions, it did urge the SEBI to finish the investigations 'preferably' within three months.

The SEBI has closed 22 of the 24 investigations and said external agencies' inputs on the remaining two enquiries are still awaited. The new application stated that, given recent events, it would be wise to set a deadline for the outstanding investigations to be completed.

Tiwari cited Hindenburg's latest allegations on the SEBI chief and her husband's involvement with the Adani group's scam. The petitioner also stated, 'It becomes incumbent for SEBI to conclude the pending investigations and declare the conclusion of the investigations" due to the report's reputation for sowing an atmosphere of doubt.'

The application argued that 'it is important in the public interest and for the interest of the investors who lost their funds after the publication of the Hindenburg report in 2023 against Adani group.' The plea added, 'The right to know about the investigations led by SEBI and its conclusions are essential for the benefit of investors.' 
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In the ongoing Hindenburg saga, the latest is an application made to the Supreme Court, requesting that SEBI finish the ongoing investigations into the Adani group of companies.

In the ongoing Hindenburg saga, the latest is an application made to the Supreme Court, requesting that SEBI finish the ongoing investigations into the Adani group of companies. This comes after the US-based short seller's most recent report, which alleged a conflict of interest involving SEBI chairperson Madhabi Puri Buch. Vishal Tiwari has submitted the latest plea. Tiwari was the petitioner in the 2023 lawsuits that sought an inquiry by the SIT or CBI into the claims made by Hindenburg in January 2023. Back then, Hindenburg had published a scathing report about the Adani group's alleged stock market manipulation. The supreme court had rejected the request for a CBI/SIT probe in January this year, supporting the SEBI's inquiry. Although the court rejected the petitions, it did urge the SEBI to finish the investigations 'preferably' within three months. The SEBI has closed 22 of the 24 investigations and said external agencies' inputs on the remaining two enquiries are still awaited. The new application stated that, given recent events, it would be wise to set a deadline for the outstanding investigations to be completed. Tiwari cited Hindenburg's latest allegations on the SEBI chief and her husband's involvement with the Adani group's scam. The petitioner also stated, 'It becomes incumbent for SEBI to conclude the pending investigations and declare the conclusion of the investigations" due to the report's reputation for sowing an atmosphere of doubt.' The application argued that 'it is important in the public interest and for the interest of the investors who lost their funds after the publication of the Hindenburg report in 2023 against Adani group.' The plea added, 'The right to know about the investigations led by SEBI and its conclusions are essential for the benefit of investors.'

Hindenburg vs SEBI chief: New plea in Supreme Court on Adani probe

The ruling Bharatiya Janata Party (BJP) in India on Monday (Aug 12) lashed out at US-based short seller Hindenburg over its report which alleged that the Securities and Exchange Board of India's (SEBI) chairperson Madhabi Puri Buch held investments in offshore funds also used by the Adani Group.

The ruling Bharatiya Janata Party (BJP) in India on Monday (Aug 12) lashed out at US-based short seller Hindenburg over its report which alleged that the Securities and Exchange Board of India's (SEBI) chairperson Madhabi Puri Buch held investments in offshore funds also used by the Adani Group. Addressing a press conference, senior BJP leader and former Union Minister Ravi Shankar Prasad questioned who was investing in Hindenburg. Prasad alleged that Hungarian-American philanthropist George Soros was the main investor in Hindenburg. Also read | Hindenburg claps back at Madhabi Buch after SEBI chief issues clarification "Do you know this gentleman George Soros who regularly runs propaganda against India...He is the main investor there...," he told reporters. Not the first time BJP sparred with Soros This is not the first time that the BJP-led Modi government has sparred with Soros. It all started last year when Hindenburg released a report that alleged Gautam Adani (Adani Group's chairperson) improperly used tax havens and flagged concerns about high debt levels at the company. In February 2023, Soros said that Indian Prime Minister Narendra Modi's fate was ‘intertwined’ with Adani's. #WATCH | On the recent report of Hindenburg Research, BJP MP Ravi Shankar Prasad says, "Today we want to raise some issues. Whose investment is there in Hindenburg? Do you know this gentleman George Soros who regularly runs propaganda against India...He is the main investor… pic.twitter.com/52B78GGFBC — ANI (@ANI) August 12, 2024 × “Modi and business tycoon Adani are close allies. Their fate is intertwined. Adani is accused of stock manipulation and his stock collapsed like a house of cards. Modi is silent on the subject, but he will have to answer questions from foreign investors and in Parliament,” Soros said during the Munich Security Conference on February 16. The BJP was quick to counter that Soros wanted to destroy India's democracy and wanted some "hand-picked" people to run the government. “A foreign power at the centre of which is a man named George Soros has announced that he will hurt India’s democratic structure. He has announced that Prime Minister Narendra Modi will be his main target," then-Union minister Smriti Irani said last year. He has also announced that he will help build a system in India that will protect his interests,” she added. A dig at Congress During Monday's press conference, BJP's Ravi Shankar Prasad took a dig at the opposition Congress party over the Hindenburg-SEBI chief issue. "In their pathological hatred against Narendra Modi, the Congress Party today has developed hatred against India itself," Prasad. Also read | Did SEBI Chief Madhabi Buch fail to disclose Adani links, recuse from probes? As Adani Group's stocks fell earlier in the day, Prasad said, "If India's stock market gets disturbed, will the small investors be troubled or not?" He further alleged that the Congress wanted "to crash the entire stock market, stop the capital investment of small investors and ensure that there should be no economic investment in India..."

Hindenburg-SEBI chief row: 'George Soros is...,' BJP lashes out at US-based short seller over its report

Amid the furore over the Hindenburg Research report alleging that Sebi chairperson Madhabi Puri Buch and her husband had stakes in an offshore fund linked to Adani group, global investors have started calling for her to resign.

Hindenburg Research, an activist short-seller firm, had alleged citing whistleblower documents that the fund in which the Sebi chief and her husband had held stakes was also used by associates of Vinod Adani, brother of Adani group chairman Gautam Adani, who allegedly used it to inflate Adani stocks in the past.

Speaking to WION on the Hindenburg vs Adani row, veteran global investor Mark Faber said the Sebi chief should resign.

"Some people associated with SEBI have a conflict of interest. We have to assume that these allegations are true. If they are true then the people involved have to resign, there is no question about this," said Faber, the publisher of ‘The Gloom, Boom &amp; Doom Report’.

He added, "How the stock market moves is not always reflective of actual economic conditions."&nbsp;

Meanwhile, economist and tech analyst&nbsp;Daniel Geltrude also suggested that Buch should resign, warning that corruption involving offshore funds can erode foreign inflows.&nbsp;

"I think there's a real concern here because if the chair [of Sebi] is actually linked to this situation, it's going to destroy investor confidence in India," Geltrude told WION.

<a href="https://www.wionews.com/videos/sebi-chief-vs-hindenburg-hindenburg-links-sebi-chief-to-adani-report-749185" target="_blank">Watch |&nbsp;SEBI chief vs Hindenburg: Hindenburg links SEBI Chief to Adani report</a>

<iframe allowfullscreen="" autoplay="1" frameborder="0" height="350" src="https://www.wionews.com/videos/sebi-chief-vs-hindenburg-hindenburg-links-sebi-chief-to-adani-report-749185/embed" width="560"></iframe>

He added: "So to have a situation here where there appears to be some improprieties... and when we are talking about offshore accounts that always raises a red flag. The people are going to be sceptical."

"If you have a scandal involving the chair of the security exchange board, well that's something we have to &nbsp;take very very seriously and the question becomes, is resignation in order here?"

In his comments to WION, Faber pointed out that India’s Sebi as well as the SEC in the US were formed to protect the interests of small investors, but alleged that they instead shield big business groups, investment banks and brokers.

"They are not interested in the interest of the small investors at all, but it is presented to the public as if they have the interest of the public in mind."

While pointing out that, being a global investor, he could not verify all the authenticity of the report by Hindenburg, Faber added: "But let's assume that it's correct, of course, the member of Sebi that essentially violated securities law, they would have to be taken into account."

"The first step would have to be that they resign," Faber said.

<a href="https://www.wionews.com/business-economy/wholl-watch-the-watchdog-did-sebi-chief-madhabi-buch-fail-to-disclose-adani-links-recuse-from-probes-749348">Also read |&nbsp;Who'll watch the watchdog? Did SEBI chief Madhabi Buch fail to disclose Adani links, recuse from probes?</a>

<h2>Madhabi Buch, husband issue second statement, Hindenburg digs heels on allegations</h2>

The investors' comments came even as Hindenburg doubled down on its allegations and responded to a second, more detailed statement from Madhabi Puri Buch and her husband Dhaval Buch.&nbsp;

The couple categorically denied claims by Hindenburg, while sharing more details about their investments.&nbsp;

In its response, Hindenburg posted on X that the couple's new statement includes "several important admissions” and raises “numerous new critical questions". &nbsp;

(With inputs from agencies)

Amid the furore over the Hindenburg Research report alleging that Sebi chairperson Madhabi Puri Buch and her husband had stakes in an offshore fund linked to Adani group, global investors have started calling for her to resign.

Amid the furore over the Hindenburg Research report alleging that Sebi chairperson Madhabi Puri Buch and her husband had stakes in an offshore fund linked to Adani group, global investors have started calling for her to resign. Hindenburg Research, an activist short-seller firm, had alleged citing whistleblower documents that the fund in which the Sebi chief and her husband had held stakes was also used by associates of Vinod Adani, brother of Adani group chairman Gautam Adani, who allegedly used it to inflate Adani stocks in the past. Speaking to WION on the Hindenburg vs Adani row, veteran global investor Mark Faber said the Sebi chief should resign. "Some people associated with SEBI have a conflict of interest. We have to assume that these allegations are true. If they are true then the people involved have to resign, there is no question about this," said Faber, the publisher of ‘The Gloom, Boom & Doom Report’. He added, "How the stock market moves is not always reflective of actual economic conditions." Meanwhile, economist and tech analyst Daniel Geltrude also suggested that Buch should resign, warning that corruption involving offshore funds can erode foreign inflows. "I think there's a real concern here because if the chair [of Sebi] is actually linked to this situation, it's going to destroy investor confidence in India," Geltrude told WION. Watch | SEBI chief vs Hindenburg: Hindenburg links SEBI Chief to Adani report He added: "So to have a situation here where there appears to be some improprieties... and when we are talking about offshore accounts that always raises a red flag. The people are going to be sceptical." "If you have a scandal involving the chair of the security exchange board, well that's something we have to take very very seriously and the question becomes, is resignation in order here?" In his comments to WION, Faber pointed out that India’s Sebi as well as the SEC in the US were formed to protect the interests of small investors, but alleged that they instead shield big business groups, investment banks and brokers. "They are not interested in the interest of the small investors at all, but it is presented to the public as if they have the interest of the public in mind." While pointing out that, being a global investor, he could not verify all the authenticity of the report by Hindenburg, Faber added: "But let's assume that it's correct, of course, the member of Sebi that essentially violated securities law, they would have to be taken into account." "The first step would have to be that they resign," Faber said. Also read | Who'll watch the watchdog? Did SEBI chief Madhabi Buch fail to disclose Adani links, recuse from probes? Madhabi Buch, husband issue second statement, Hindenburg digs heels on allegations The investors' comments came even as Hindenburg doubled down on its allegations and responded to a second, more detailed statement from Madhabi Puri Buch and her husband Dhaval Buch. The couple categorically denied claims by Hindenburg, while sharing more details about their investments. In its response, Hindenburg posted on X that the couple's new statement includes "several important admissions” and raises “numerous new critical questions". (With inputs from agencies)

Hindenburg vs Adani: Global investors say Sebi chief Madhabi Buch should resign to restore confidence