There was outrage over the Hindenburg Research report that made new allegations relating to offshore funds against the Securities and Exchange Board of India chairman, Madhabi Puri Buch. The charges are, however, being denied by the Financial Services Commission of Mauritius, saying that the funds are "not domiciled" in the island nation.

'The report of Hindenburg has further cited 'IPE Plus Fund' is a small offshore Mauritius Fund, and 'IPE Plus Fund 1, a fund registered in Mauritius'. We wish to clarify that IPE Plus Fund and IPE Plus Fund 1 are not licensees of the FSC and are not domiciled in Mauritius,' the regulator stated in a statement as it took cognisance of the contents of the new Hindenburg Research report.

The American firm accused the SEBI in its report of having a "surprising lack of interest in Adani's alleged undisclosed web of Mauritius and offshore shell entities" because of Buch's hidden financial interest in the conglomerate. According to Hindenburg, Buch and her husband had undisclosed investments in obscure offshore funds in Bermuda and Mauritius—the very entities allegedly used by one Vinod Adani, brother of Gautam Adani, to manipulate the financial markets.

'Mauritius has a robust framework for global business companies. All global business companies licensed by the FSC have to meet substance requirements on an ongoing basis as per section 71 of the Financial Services Act, which is strictly monitored by the FSC,'&nbsp;stated the Mauritius regulator in clarification that they do not permit the creation of shell companies.

According to FSC, Mauritius adheres to international best practices and has been assessed as compliant with the standards of the Organisation for Economic Co-operation and Development (OECD).

'As per the peer review conducted by the OECD Forum on Harmful Tax Practices, the OECD is satisfied that Mauritius does not have any harmful features in its tax regimes, thus recognising Mauritius as a well-regulated, transparent, and compliant jurisdiction. Therefore, Mauritius cannot be termed as a tax haven,' it said.

There was outrage over the Hindenburg Research report that made new allegations relating to offshore funds against the Securities and Exchange Board of India chairman, Madhabi Puri Buch.

There was outrage over the Hindenburg Research report that made new allegations relating to offshore funds against the Securities and Exchange Board of India chairman, Madhabi Puri Buch. The charges are, however, being denied by the Financial Services Commission of Mauritius, saying that the funds are "not domiciled" in the island nation. 'The report of Hindenburg has further cited 'IPE Plus Fund' is a small offshore Mauritius Fund, and 'IPE Plus Fund 1, a fund registered in Mauritius'. We wish to clarify that IPE Plus Fund and IPE Plus Fund 1 are not licensees of the FSC and are not domiciled in Mauritius,' the regulator stated in a statement as it took cognisance of the contents of the new Hindenburg Research report. The American firm accused the SEBI in its report of having a "surprising lack of interest in Adani's alleged undisclosed web of Mauritius and offshore shell entities" because of Buch's hidden financial interest in the conglomerate. According to Hindenburg, Buch and her husband had undisclosed investments in obscure offshore funds in Bermuda and Mauritius—the very entities allegedly used by one Vinod Adani, brother of Gautam Adani, to manipulate the financial markets. 'Mauritius has a robust framework for global business companies. All global business companies licensed by the FSC have to meet substance requirements on an ongoing basis as per section 71 of the Financial Services Act, which is strictly monitored by the FSC,' stated the Mauritius regulator in clarification that they do not permit the creation of shell companies. According to FSC, Mauritius adheres to international best practices and has been assessed as compliant with the standards of the Organisation for Economic Co-operation and Development (OECD). 'As per the peer review conducted by the OECD Forum on Harmful Tax Practices, the OECD is satisfied that Mauritius does not have any harmful features in its tax regimes, thus recognising Mauritius as a well-regulated, transparent, and compliant jurisdiction. Therefore, Mauritius cannot be termed as a tax haven,' it said.

Financial commission of Mauritius debunks Hindenburg's offshore allegations

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

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Financial commission of Mauritius debunks Hindenburg's offshore allegations

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