In the Hindenburg vs Adani saga, markets have looked past the face-off. However, 42,000 crore rupees of mutual funds money is riding on the Adani group firms' stocks. The market impact has waned this time around. However, Hindenburg's allegations could weigh heavily on small investors.

Hindenburg vs Adani: Investors look past Hindeburg's allegations

The head of&nbsp;India's markets regulator, Madhabi Puri Buch, continued to earn revenue from a consultancy firm during her seven-year tenure, potentially breaching rules for&nbsp;regulatory&nbsp;officials, according to public documents reviewed by Reuters.

Hindenburg Research has alleged a conflict of interest in Buch's investigations surrounding the Adani Group due to her previous investments. The allegations against the Gautam Adani-led conglomerate, made in January last year, triggered a big drop in the share prices of the flagship Adani Enterprises and other group firms which later recovered, prompting an ongoing investigation by the Securities and Exchange Board of&nbsp;India&nbsp;(SEBI).

Buch, in a statement on August&nbsp;11, denied allegations of a conflict of interest and termed them as an attempt at "character assassination".

Separately, the US&nbsp;shortseller, in its latest report, highlighted two consultancy firms operated by Buch and her husband - Singapore-based Agora Partners and&nbsp;India-based Agora Advisory.

Also Read:&nbsp;<a href="https://www.wionews.com/india-news/who-is-madhabi-buch-the-sebi-chief-named-in-hindenburgs-latest-adani-report-749092">Who is Madhabi Buch? The SEBI chief named in Hindenburg's latest Adani report</a>

Buch joined SEBI in 2017 and was appointed to the top position in March 2022. In those seven years, Agora Advisory Pvt Ltd in which Buch has 99 per cent&nbsp;shareholding, earned a revenue of 37.1 million rupees ($442,025), according to public documents from the Registrar of Companies, analysed by Reuters.

Buch's holdings potentially violate a 2008 SEBI policy that prohibits officials from holding an office of profit, receiving salary or professional fees from other professional activities.

Buch in her statement said the consultancy firms had been disclosed to SEBI and that her husband used these firms for his consulting business after retiring from Unilever in 2019.

Buch and the SEBI spokesperson did not immediately respond to emails seeking comment.

Hindenburg, citing Singapore company records, stated that Buch transferred all her shares in Agora Partners to her husband in March 2022. However, according to company records for the financial year ending March 2024, Buch still holds shares in the&nbsp;Indian consulting firm.

The documents, reviewed by Reuters, do not detail the business undertaken by the consultancy nor is there any available information to suggest these revenues had any link to the Adani Group.

Subhash Chandra Garg, a former top bureaucrat in the&nbsp;Indian government and a SEBI board member during Buch's tenure, described her equity in the firm and its continued business operations as a "very serious" breach of conduct.

"There was no justification for her to continue to own the firm after she joined the board. She could not have been allowed even after making disclosures," Garg said.

"This makes her position completely untenable at the regulator."

Buch has not clarified whether she was granted a waiver to retain her shareholding in the&nbsp;Indian consulting firm. A specific query to her on this was also not answered.

Watch:&nbsp;Hindenburg vs SEBI Chief Saga: Should Hindenburg's allegations be probed?

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Hindenburg's allegations have led to calls for Buch's resignation, including from opposition leaders. A spokesperson for the ruling Bharatiya Janata Party (BJP) called it a baseless attack.

According to Garg and a SEBI board member, no disclosures were made by her or any other officials to the board regarding their business interests.

"There was a requirement to make annual disclosures, but board members' disclosures were not placed in front of the board for information or scrutiny," the board member said, who declined to be identified as information on disclosures to the board is not public.

"To be sure, no members' disclosures were discussed. If the disclosures were made only in front of Ajay Tyagi, the then chairperson, I am not privy to that," Garg said.

Messages and calls to Tyagi about whether disclosures were made to him were not answered.

Disclaimer: This story has been published from a news agency feed with minimal edits to adhere to WION's style guide. The headline may have been changed to better reflect the content of the story or to make it more suitable for WION audience.

The head of India's markets regulator, Madhabi Puri Buch, continued to earn revenue from a consultancy firm during her seven-year tenure, potentially breaching rules for regulatory officials, according to public documents reviewed by Reuters.

The head of India's markets regulator, Madhabi Puri Buch, continued to earn revenue from a consultancy firm during her seven-year tenure, potentially breaching rules for regulatory officials, according to public documents reviewed by Reuters. Hindenburg Research has alleged a conflict of interest in Buch's investigations surrounding the Adani Group due to her previous investments. The allegations against the Gautam Adani-led conglomerate, made in January last year, triggered a big drop in the share prices of the flagship Adani Enterprises and other group firms which later recovered, prompting an ongoing investigation by the Securities and Exchange Board of India (SEBI). Buch, in a statement on August 11, denied allegations of a conflict of interest and termed them as an attempt at "character assassination". Separately, the US shortseller, in its latest report, highlighted two consultancy firms operated by Buch and her husband - Singapore-based Agora Partners and India-based Agora Advisory. Also Read: Who is Madhabi Buch? The SEBI chief named in Hindenburg's latest Adani report Buch joined SEBI in 2017 and was appointed to the top position in March 2022. In those seven years, Agora Advisory Pvt Ltd in which Buch has 99 per cent shareholding, earned a revenue of 37.1 million rupees ($442,025), according to public documents from the Registrar of Companies, analysed by Reuters. Buch's holdings potentially violate a 2008 SEBI policy that prohibits officials from holding an office of profit, receiving salary or professional fees from other professional activities. Buch in her statement said the consultancy firms had been disclosed to SEBI and that her husband used these firms for his consulting business after retiring from Unilever in 2019. Buch and the SEBI spokesperson did not immediately respond to emails seeking comment. Hindenburg, citing Singapore company records, stated that Buch transferred all her shares in Agora Partners to her husband in March 2022. However, according to company records for the financial year ending March 2024, Buch still holds shares in the Indian consulting firm. The documents, reviewed by Reuters, do not detail the business undertaken by the consultancy nor is there any available information to suggest these revenues had any link to the Adani Group. Subhash Chandra Garg, a former top bureaucrat in the Indian government and a SEBI board member during Buch's tenure, described her equity in the firm and its continued business operations as a "very serious" breach of conduct. "There was no justification for her to continue to own the firm after she joined the board. She could not have been allowed even after making disclosures," Garg said. "This makes her position completely untenable at the regulator." Buch has not clarified whether she was granted a waiver to retain her shareholding in the Indian consulting firm. A specific query to her on this was also not answered. Watch: Hindenburg vs SEBI Chief Saga: Should Hindenburg's allegations be probed? Hindenburg's allegations have led to calls for Buch's resignation, including from opposition leaders. A spokesperson for the ruling Bharatiya Janata Party (BJP) called it a baseless attack. According to Garg and a SEBI board member, no disclosures were made by her or any other officials to the board regarding their business interests. "There was a requirement to make annual disclosures, but board members' disclosures were not placed in front of the board for information or scrutiny," the board member said, who declined to be identified as information on disclosures to the board is not public. "To be sure, no members' disclosures were discussed. If the disclosures were made only in front of Ajay Tyagi, the then chairperson, I am not privy to that," Garg said. Messages and calls to Tyagi about whether disclosures were made to him were not answered. Disclaimer: This story has been published from a news agency feed with minimal edits to adhere to WION's style guide. The headline may have been changed to better reflect the content of the story or to make it more suitable for WION audience.

India regulatory chief earned revenue in potential rules violation, documents show

In the Hindenburg vs SEBI Chief saga, calls for an independent investigation is growing. From India's opposition parties to experts have joined in the chorus to probe Hindenburg's allegations against SEBI Chief Madhabi Puri Buch. Maintaining the credibility of the markets regulator and the ongoing controversy surrounding the SEBI Chief highlights the need for an independent probe.

Hindenburg vs SEBI Chief Saga: Independent probe needed to put allegations to rest?

Hindenburg vs SEBI Chief Saga: Should Hindenburg's allegations be probed?

More than 18 months after Hindenburg initially accused the Adani group of fraud, the short seller has managed to keep the story in the forefront. The fact that Hindenburg is still making waves shows SEBI is yet to draw a line under these accusations.

Hindenburg vs SEBI Chief: Hindenburg keeps spotlight on Adani group

Hindenburg vs SEBI Chief: Hindenburg keeps Adani group in focus

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 most recent report by Hindenburg Research, which alleged a conflict of interest involving SEBI Chairperson Madhabi Puri Buch.

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

A report by the Indian Express shows Mauritius-based IPE Plus Fund 1 is in prime focus in the scandal surrounding SEBI Chief Madhabi Puri Buch and her husband Dhaval Buch. According to the report, this fund had investments from Vinod Adani. Watch in for more details!

Hindenburg vs SEBI Chief Saga: Buch linked to fund with investments by Vinod Adani, says Hindenburg

Hindenburg vs SEBI Chief Saga: Web of funds & investments under SEBI probe

Hindenburg vs SEBI Chief Saga: Buch's investment in part of structure under SEBI probe

Hindenburg vs SEBI Chief Saga: Indian stocks move in caution

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' 
 
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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

Hindenburg vs SEBI Chief Saga: Hindenburg demands SEBI Chief's client list

Hindenburg vs SEBI Chief Saga: SEBI Chief's investment part of structure?

Hindenburg vs SEBI Chief Saga: Buch couple's fund investments under scanner

Hindenburg vs SEBI Chief Saga: SEBI's probe include Buch's investment fund?

Union Finance Minister Nirmala Sitaraman has&nbsp;received a letter from former ministry official, EAS Sarma, urging her to push for a judicial investigation into the allegations made by US-based short-seller, Hindenburg Research, in its latest report against SEBI chief Madhabi Puri Buch.&nbsp;

Sarma said Madhabi's 'conflict of interest' with Adani Group forced the Indian market regulator to conduct an impartial probe into the previous allegations made by Hindenburg.&nbsp;&nbsp;

"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, as per news agency&nbsp;PTI.

The career bureaucrat added that the government should request the Chief Justice of India (CJI) to nominate a senior member to head an inquiry commission that may probe the case to uphold the public trust in the regulatory body.

"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;

Prior to Sarma, Leader of Opposition (LoP) in Lok Sabha (Lower House of Indian Parliament) and Indian National Congress (INC) leader, Rahul Gandhi, had also demanded a Joint Parliamentary Committee (JPC) inquiry into the charges.&nbsp;

<a href="https://www.wionews.com/videos/hindenburg-vs-sebi-chief-saga-hindenburg-allegations-invoke-chandra-kochars-case-749589">Watch |&nbsp;Hindenburg vs SEBI Chief Saga: Hindenburg allegations invoke Chandra Kochar's case</a>

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<h2>Opposition demands JPC probe</h2>

Gandhi asked the government if something were to go wrong and investors were to lose their hard-earned money, "who would be held responsible?"&nbsp;

“Is the Prime Minister of India responsible? Is Madhabi Buch responsible, or is Mr&nbsp;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">Also read |&nbsp;Who'll watch the watchdog? Did SEBI chief Madhabi Buch fail to disclose Adani links, recuse from probes?</a>

Meanwhile, global investors have also urged Madhabi to resign from the top post to maintain the sanctity of the watchdog.&nbsp;

"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," Mark Faber,&nbsp;the publisher of ‘The Gloom, Boom &amp; Doom Report’ told WION.

Economist and tech analyst Daniel Geltrude also suggested that Madhabi should resign, warning that corruption involving offshore funds can erode foreign inflows.

(With inputs from agencies)

Union Finance Minister Nirmala Sitaraman has received a letter from former ministry official, EAS Sarma, urging her to push for a judicial investigation into the allegations made by US-based short-seller, Hindenburg Research, in its latest report against SEBI chief Madhabi Puri Buch.

Union Finance Minister Nirmala Sitaraman has received a letter from former ministry official, EAS Sarma, urging her to push for a judicial investigation into the allegations made by US-based short-seller, Hindenburg Research, in its latest report against SEBI chief Madhabi Puri Buch. Sarma said Madhabi's 'conflict of interest' with Adani Group forced the Indian market regulator to conduct an impartial probe into the previous allegations made by Hindenburg. "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, as per news agency PTI. The career bureaucrat added that the government should request the Chief Justice of India (CJI) to nominate a senior member to head an inquiry commission that may probe the case to uphold the public trust in the regulatory body. "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. Prior to Sarma, Leader of Opposition (LoP) in Lok Sabha (Lower House of Indian Parliament) and Indian National Congress (INC) leader, Rahul Gandhi, had also demanded a Joint Parliamentary Committee (JPC) inquiry into the charges. Watch | Hindenburg vs SEBI Chief Saga: Hindenburg allegations invoke Chandra Kochar's case × Opposition demands JPC probe Gandhi asked the government if something were to go wrong and investors were to lose their hard-earned money, "who would be held responsible?" “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? Meanwhile, global investors have also urged Madhabi to resign from the top post to maintain the sanctity of the watchdog. "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," Mark Faber, the publisher of ‘The Gloom, Boom & Doom Report’ told WION. Economist and tech analyst Daniel Geltrude also suggested that Madhabi should resign, warning that corruption involving offshore funds can erode foreign inflows. (With inputs from agencies)

Hindenburg report: Ex-Finance Ministry official urges Nirmala Sitharaman to probe SEBI chief Madhabi Buch

While a face-off between the US short seller and SEBI chief is escalating India's markets regulator has asked investors to remain calm. However, the spat is becoming more controversial, with back-and-forth remarks being exchanged between Hindenburg and the SEBI Chief.

Hindenburg vs SEBI Chief Saga: Hindenburg allegations invoke Chandra Kochar's case

Hindenburg counters SEBI Chief's rebuttal statement

Hindenburg Vs SEBI saga explodes again; Hindenburg counter SEBI's chief rebuttal

As much as $4.98 billion (Rs 41,814 crore) worth of investments have been made by mutual funds in 10 companies belonging to the Adani Group, a report by US-based short-seller Hindenburg Research has revealed.&nbsp;

Currently, there are 11 Adani Group companies listed in the Indian markets and barring New Delhi Television (NDTV) - the mutual fund managers have parked investors' money in every single company, according to Moneycontrol.

<ul>
	<li>Ambuja Cements</li>
	<li>ACC</li>
	<li>Adani Ports and SEZ</li>
	<li>Adani Enterprises</li>
	<li>Adani Power</li>
	<li>Adani Energy Solutions</li>
	<li>Adani Green Energy</li>
	<li>Adani Total Gas</li>
	<li>Sanghi Industries</li>
	<li>Adani Wilmar</li>
	<li>New Delhi Television (NDTV)</li>
</ul>

As of July 2024, Adani Ports and SEZ had the highest mutual fund exposure at $1.5 billion (Rs 13,024), followed by Ambuja Cements at $1.07 billion (Rs 8999.25 crore).&nbsp;

After the Hindenburg report was released on Saturday (Aug 10), the Indian stock market opened in red on Monday (Aug 12) with all Adani stocks experiencing a significant dip.&nbsp;Adani Ports and SEZ was down 2.33 per cent by the end of the day while Adani Enterprises closed at Rs 3,140 - down 2.46 per cent from the last trading session.&nbsp;

<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>

<h2>What did the report claim?&nbsp;</h2>

The Hindenburg&nbsp;report published on Saturday (Aug 10), citing whistleblower documents claimed that market regulator SEBI chief, Madhabi Puri Buch, had a conflict of interest due to investments made by her in funds&nbsp;linked to the Adani Group's alleged financial misconduct.

The money was invested in a fund, linked to associates of Vinod Adani, brother of Gautam Adani, who is chairman of Adani Group.

"She had a&nbsp;100 per cent interest in an offshore Singaporean consulting firm, called Agora Partners. On March 16, 2022, two weeks after her appointment as SEBI chairperson, she quietly transferred the shares to her husband," the report said.&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">Also read |&nbsp;Who'll watch the watchdog? Did SEBI chief Madhabi Buch fail to disclose Adani links, recuse from probes?</a>

The report also highlighted the SEBI chief's role in&nbsp;promoting Real Estate Investment Trusts (REITs) in India - an asset class that significantly benefitted Blackstone, where her husband is a senior adviser.&nbsp;Prior to his adviser role,&nbsp;Dhaval had not worked for a fund, in real estate or capital markets.&nbsp;

This report by Hindenburg comes more than a year after the short-seller alleged improper use of tax havens and stock manipulation by Adani Group, setting off a $150 billion sell-off in the conglomerate's stocks despite its denials of wrongdoing.

(With inputs from agencies)

As much as $4.98 billion (Rs 41,814 crore) worth of investments have been made by mutual funds in 10 companies belonging to the Adani Group, a report by US-based short-seller Hindenburg Research has revealed.

As much as $4.98 billion (Rs 41,814 crore) worth of investments have been made by mutual funds in 10 companies belonging to the Adani Group, a report by US-based short-seller Hindenburg Research has revealed. Currently, there are 11 Adani Group companies listed in the Indian markets and barring New Delhi Television (NDTV) - the mutual fund managers have parked investors' money in every single company, according to Moneycontrol. Ambuja Cements ACC Adani Ports and SEZ Adani Enterprises Adani Power Adani Energy Solutions Adani Green Energy Adani Total Gas Sanghi Industries Adani Wilmar New Delhi Television (NDTV) As of July 2024, Adani Ports and SEZ had the highest mutual fund exposure at $1.5 billion (Rs 13,024), followed by Ambuja Cements at $1.07 billion (Rs 8999.25 crore). After the Hindenburg report was released on Saturday (Aug 10), the Indian stock market opened in red on Monday (Aug 12) with all Adani stocks experiencing a significant dip. Adani Ports and SEZ was down 2.33 per cent by the end of the day while Adani Enterprises closed at Rs 3,140 - down 2.46 per cent from the last trading session. Watch | SEBI chief vs Hindenburg: Hindenburg links SEBI Chief to Adani report What did the report claim? The Hindenburg report published on Saturday (Aug 10), citing whistleblower documents claimed that market regulator SEBI chief, Madhabi Puri Buch, had a conflict of interest due to investments made by her in funds linked to the Adani Group's alleged financial misconduct. The money was invested in a fund, linked to associates of Vinod Adani, brother of Gautam Adani, who is chairman of Adani Group. "She had a 100 per cent interest in an offshore Singaporean consulting firm, called Agora Partners. On March 16, 2022, two weeks after her appointment as SEBI chairperson, she quietly transferred the shares to her husband," the report said. Also read | Who'll watch the watchdog? Did SEBI chief Madhabi Buch fail to disclose Adani links, recuse from probes? The report also highlighted the SEBI chief's role in promoting Real Estate Investment Trusts (REITs) in India - an asset class that significantly benefitted Blackstone, where her husband is a senior adviser. Prior to his adviser role, Dhaval had not worked for a fund, in real estate or capital markets. This report by Hindenburg comes more than a year after the short-seller alleged improper use of tax havens and stock manipulation by Adani Group, setting off a $150 billion sell-off in the conglomerate's stocks despite its denials of wrongdoing. (With inputs from agencies)

Hindenburg report reveals $5 billion mutual fund money invested in 10 Adani Group companies

Hindenburg vs SEBI Chief Saga: SEBI Chair says allegations are baseless

After the Hindenberg allegations, questions are being asked if SEBI chief Madhabi Puri Buch failed to disclose her links to Adani Enterprises. The specific issues at stake are: whether she fully and unequivocally disclosed her investments in a fund that had inflated&nbsp;the stock prices of Adani group firms in the past, and why she didn't recuse&nbsp;herself from recent SEBI investigations into Adani when she was chairperson.

Buch, the chief of the Indian stock market regulator Securities and Exchanges Board of India, or SEBI, is at the eye of a storm after the activist short-selling firm Hindenberg Research made fresh claims about her alleged&nbsp;links to the Indian conglomerate Adani.

<h2>Why it's important to make disclosures</h2>

From a retail investor upwards, one is expected to make disclosures to their employers on stock market investments that could involve a conflict of interest or potential insider trading. Several financial organisations, for instance, would require their staff to disclose the stocks they've invested in.

Ideally, this should apply all the way up to the top of the food chain.

SEBI chairperson, being the head of a government agency, is supposed to make such disclosure to the government. Buch is the first private sector person, and woman, to be made SEBI chief, a post she assumed in 2022 for a three-year term.

While Buch, being a private sector person and not a civil servant, has the right to own shares of, or be in the board of, various companies or related entities, each of these investments - directly or indirectly- should have been known to the government to avoid potential future conflict of interest.

<h2>Why is the issue of recusal important for SEBI chairperson?</h2>

In simple terms, it's mandatory that if a SEBI official has a direct or indirect interest or stake in a company or person being investigated by SEBI, the official should reveal so and excuse him/herself from such investigations. There is precedent to this: former chairperson CB Bhave recused himself when the SEBI board was discussing the issue of National Securities Depository Limited's lack of oversight over a depository participant because Bhave was the managing director of NSDL at the time.&nbsp;

A former SEBI board member told the paper that&nbsp;there had been an instance in the past when the chairperson recused himself over what could be seen as a conflict of interest.&nbsp;

<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>

It should be noted that Adani had been investigated by SEBI just last year, following earlier allegations by Hindenburg, and was given a clean chit. Buch was at the helm of SEBI at the time. Her conduct as a whole-time member or the chairperson of SEBI, when Adani-related complaints or investigations came to her desk, is at issue here, Indian Express (IE) newspaper cited a former SEBI chief as saying. "Did she recuse herself?”

A SEBI official who once investigated a stock exchange scam told IE&nbsp;that he was told not to send his probe files to the SEBI chairman at the time because there were allegations against him too. “In the present case too with allegations of a conflict of interest being thrown around, the chairperson could and maybe should have recused herself from the Adani investigation,” IE quoted him as saying.

<a href="https://www.wionews.com/india-news/hindenburg-report-alleges-market-regulator-chief-her-spouse-held-stake-in-adani-groups-offshore-funds-749068" target="_blank">Also read |&nbsp;Hindenburg report alleges market regulator chief, her spouse held stake in Adani Group's offshore funds</a>&nbsp;

<h2>What is SEBI chief Buch and husband Dhaval Buch's link to Adani?</h2>

 
It has been alleged&nbsp;that Buch and her husband Dhaval Buch had direct or indirect interest in Adani-related stocks or global funds. In its latest report, Hindenburg Research has accused the couple of having a stake in offshore funds that had artificially inflated shares of Adani Group companies in the past. Buch said she had invested in a global fund in 2015 that had Adani-linked stocks before she became a whole-time member of SEBI in 2017. That investment was redeemed in 2018, she said.

For their part, Madhabi Puri Buch and Dhaval Buch said in a statement, “SEBI has strong institutional mechanisms of disclosure and recusal norms as per the code of conduct applicable to its officers. Accordingly, all disclosures and recusals have been diligently followed, including disclosures of all securities held or subsequently transferred.”

In her statement, Madhabi Buch also said that after her husband was appointed as Senior Advisor to Blackstone Group, the company was added to SEBI's recusal list for her. 
 
The point to note however is that her time in SEBI since 2017 overlaps with its probe into 13 offshore entities which held stake in Adani group companies, the IE report&nbsp;quoted another former SEBI chief as saying, who cited public domain information.

<a href="https://www.wionews.com/india-news/her-response-now-confirms-hindenburg-claps-back-at-madhabi-buch-after-sebi-chief-issues-clarification-749330">Also read |&nbsp;'Her response now confirms...': Hindenburg claps back at Madhabi Buch after SEBI chief issues clarification</a>

<h2>SEBI under scrutiny: Who will watch the watchdog?</h2>

Being a government-appointed, independent regulator of Indian markets, SEBI is not further investigated by other government agencies like the Central Vigilance Commission (CVC). Notably, CVC can investigate probe agencies like the Central Bureau of Investigation and Enforcement Directorate, but not SEBI.

Former Chief Vigilance Commissioner Pradeep Kumar was quoted by IE as saying, “The SEBI is an independent market regulatory body and the CVC has a limited role in its supervision, if at all.&nbsp; There is certainly no superintendence of the CVC over the SEBI, say, as it has over the CBI and the ED.”

The SEBI board consists of members from the finance ministry and the Reserve Bank of India, the country's central bank, which in itself is seen as self-regulation. Also, SEBI orders can be further questioned at the Securities Appellate Tribunal, which is another oversight mechanism.

(With inputs from agencies)

After the Hindenberg allegations, questions are being asked if SEBI chief Madhabi Puri Buch failed to disclose her links to Adani Enterprises. The specific issues at stake are: whether she fully and unequivocally disclosed her investments in a fund that had inflated the stock prices of Adani group firms in the past, and why she didn't recuse herself from recent SEBI investigations into Adani when she was chairperson.

After the Hindenberg allegations, questions are being asked if SEBI chief Madhabi Puri Buch failed to disclose her links to Adani Enterprises. The specific issues at stake are: whether she fully and unequivocally disclosed her investments in a fund that had inflated the stock prices of Adani group firms in the past, and why she didn't recuse herself from recent SEBI investigations into Adani when she was chairperson. Buch, the chief of the Indian stock market regulator Securities and Exchanges Board of India, or SEBI, is at the eye of a storm after the activist short-selling firm Hindenberg Research made fresh claims about her alleged links to the Indian conglomerate Adani. Why it's important to make disclosures From a retail investor upwards, one is expected to make disclosures to their employers on stock market investments that could involve a conflict of interest or potential insider trading. Several financial organisations, for instance, would require their staff to disclose the stocks they've invested in. Ideally, this should apply all the way up to the top of the food chain. SEBI chairperson, being the head of a government agency, is supposed to make such disclosure to the government. Buch is the first private sector person, and woman, to be made SEBI chief, a post she assumed in 2022 for a three-year term. While Buch, being a private sector person and not a civil servant, has the right to own shares of, or be in the board of, various companies or related entities, each of these investments - directly or indirectly- should have been known to the government to avoid potential future conflict of interest. Why is the issue of recusal important for SEBI chairperson? In simple terms, it's mandatory that if a SEBI official has a direct or indirect interest or stake in a company or person being investigated by SEBI, the official should reveal so and excuse him/herself from such investigations. There is precedent to this: former chairperson CB Bhave recused himself when the SEBI board was discussing the issue of National Securities Depository Limited's lack of oversight over a depository participant because Bhave was the managing director of NSDL at the time. A former SEBI board member told the paper that there had been an instance in the past when the chairperson recused himself over what could be seen as a conflict of interest. Watch | SEBI chief vs Hindenburg: Hindenburg links SEBI Chief to Adani report It should be noted that Adani had been investigated by SEBI just last year, following earlier allegations by Hindenburg, and was given a clean chit. Buch was at the helm of SEBI at the time. Her conduct as a whole-time member or the chairperson of SEBI, when Adani-related complaints or investigations came to her desk, is at issue here, Indian Express (IE) newspaper cited a former SEBI chief as saying. "Did she recuse herself?” A SEBI official who once investigated a stock exchange scam told IE that he was told not to send his probe files to the SEBI chairman at the time because there were allegations against him too. “In the present case too with allegations of a conflict of interest being thrown around, the chairperson could and maybe should have recused herself from the Adani investigation,” IE quoted him as saying. Also read | Hindenburg report alleges market regulator chief, her spouse held stake in Adani Group's offshore funds What is SEBI chief Buch and husband Dhaval Buch's link to Adani? It has been alleged that Buch and her husband Dhaval Buch had direct or indirect interest in Adani-related stocks or global funds. In its latest report, Hindenburg Research has accused the couple of having a stake in offshore funds that had artificially inflated shares of Adani Group companies in the past. Buch said she had invested in a global fund in 2015 that had Adani-linked stocks before she became a whole-time member of SEBI in 2017. That investment was redeemed in 2018, she said. For their part, Madhabi Puri Buch and Dhaval Buch said in a statement, “SEBI has strong institutional mechanisms of disclosure and recusal norms as per the code of conduct applicable to its officers. Accordingly, all disclosures and recusals have been diligently followed, including disclosures of all securities held or subsequently transferred.” In her statement, Madhabi Buch also said that after her husband was appointed as Senior Advisor to Blackstone Group, the company was added to SEBI's recusal list for her. The point to note however is that her time in SEBI since 2017 overlaps with its probe into 13 offshore entities which held stake in Adani group companies, the IE report quoted another former SEBI chief as saying, who cited public domain information. Also read | 'Her response now confirms...': Hindenburg claps back at Madhabi Buch after SEBI chief issues clarification SEBI under scrutiny: Who will watch the watchdog? Being a government-appointed, independent regulator of Indian markets, SEBI is not further investigated by other government agencies like the Central Vigilance Commission (CVC). Notably, CVC can investigate probe agencies like the Central Bureau of Investigation and Enforcement Directorate, but not SEBI. Former Chief Vigilance Commissioner Pradeep Kumar was quoted by IE as saying, “The SEBI is an independent market regulatory body and the CVC has a limited role in its supervision, if at all. There is certainly no superintendence of the CVC over the SEBI, say, as it has over the CBI and the ED.” The SEBI board consists of members from the finance ministry and the Reserve Bank of India, the country's central bank, which in itself is seen as self-regulation. Also, SEBI orders can be further questioned at the Securities Appellate Tribunal, which is another oversight mechanism. (With inputs from agencies)

Who'll watch the watchdog? Did SEBI chief Madhabi Buch fail to disclose Adani links, recuse from probes?

Hindenburg vs SEBI Chief Saga: Hindenburg counters SEBI Chief's rebuttal statement

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

US-based short seller Hindenburg Research has doubled down on its allegations against Indian market regulator (SEBI) chief, Madhabi Puri Buch, after the latter published a clarification on Sunday (Aug 11).

Madhabi, in a joint statement with her husband, Dhawal Buch,&nbsp;accused Hindenburg of attempting a "character assassination" of the Buchs.

However, the research firm said the SEBI chair's response to the report included "several important admissions" that raised numerous "new critical questions".

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<blockquote class="twitter-tweet">
SEBI Chairperson Madhabi Buch’s response to our report includes several important admissions and raises numerous new critical questions. 
 
(1/x) <a href="https://t.co/Usk0V6e90K">https://t.co/Usk0V6e90K</a>
— Hindenburg Research (@HindenburgRes) <a href="https://twitter.com/HindenburgRes/status/1822691385730040048?ref_src=twsrc%5Etfw">August 11, 2024</a></blockquote>
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Hindenburg alleged that Madhabi confirmed she had invested in an obscure Bermuda/Mauritius fund&nbsp;alongside money allegedly siphoned by Vinod Adani -&nbsp;brother of Gautam Adani, who is chairman of Adani Group.

"SEBI was tasked with investigating investment funds relating to the Adani matter, which would include funds Ms Buch was personally invested in and funds by the same sponsor which were specifically highlighted in our original report. This is obviously a massive conflict of interest," Hindenburg added.&nbsp;

The research firm also quizzed if Madhabi would "release the full list of consulting clients and details of the engagements"&nbsp;both through the offshore Singaporean consulting firm, the Indian consulting firm or any other entity she may have an interest in.&nbsp;

<a href="https://www.wionews.com/business-economy/adani-stocks-open-in-red-post-the-ongoing-hindenburg-and-sebi-chief-saga-749298">Also read |&nbsp;Adani stocks open in red amid Hindenburg-SEBI chief saga</a>

<h2>What did the report claim?&nbsp;</h2>

The report published on Saturday (Aug 10), citing whistleblower documents claimed that the SEBI chief had a conflict of interest when the regulator investigated the Adani Group for an earlier 'expose' by Hindenburg.&nbsp;

Weeks before Buch's appointment to SEBI, her husband, Dhaval Buch, requested to transfer their investments into his sole control to avoid any scrutiny that may come with the high-profile regulatory job, the report said.

The report also highlighted the SEBI chief's role in&nbsp;promoting Real Estate Investment Trusts (REITs) in India - an asset class that significantly benefitted Blackstone, where her husband is a senior adviser.&nbsp;Prior to his adviser role,&nbsp;Dhaval had not worked for a fund, in real estate or capital markets.&nbsp;

<a href="https://www.wionews.com/videos/sebi-chief-vs-hindenburg-hindenburg-links-sebi-chief-to-adani-report-749185">Watch |&nbsp;SEBI chief vs Hindenburg: Hindenburg links SEBI Chief to Adani report</a>

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&nbsp;

<h2>SEBI chief to quit?</h2>

According to reliable sources, a big fallout due to the report within the upper hierarchy of SEBI may not be ruled out.

Reports indicate that Adani Group has already begun lobbying for the next SEBI chairperson and the name of Dinesh Khara, the recently retired former State Bank of India chief, is doing the rounds.&nbsp;

As for the confidence in the Indian markets and economy, especially the foreign investors, the opposition has started pressuring the Indian government to act and remove the SEBI chief.

(With inputs from agencies)

US-based short seller Hindenburg Research has doubled down on its allegations against Indian market regulator (SEBI) chief, Madhabi Puri Buch, after the latter published a clarification on Sunday (Aug 11).

US-based short seller Hindenburg Research has doubled down on its allegations against Indian market regulator (SEBI) chief, Madhabi Puri Buch, after the latter published a clarification on Sunday (Aug 11). Madhabi, in a joint statement with her husband, Dhawal Buch, accused Hindenburg of attempting a "character assassination" of the Buchs. However, the research firm said the SEBI chair's response to the report included "several important admissions" that raised numerous "new critical questions". SEBI Chairperson Madhabi Buch’s response to our report includes several important admissions and raises numerous new critical questions. (1/x) https://t.co/Usk0V6e90K — Hindenburg Research (@HindenburgRes) August 11, 2024 × Hindenburg alleged that Madhabi confirmed she had invested in an obscure Bermuda/Mauritius fund alongside money allegedly siphoned by Vinod Adani - brother of Gautam Adani, who is chairman of Adani Group. "SEBI was tasked with investigating investment funds relating to the Adani matter, which would include funds Ms Buch was personally invested in and funds by the same sponsor which were specifically highlighted in our original report. This is obviously a massive conflict of interest," Hindenburg added. The research firm also quizzed if Madhabi would "release the full list of consulting clients and details of the engagements" both through the offshore Singaporean consulting firm, the Indian consulting firm or any other entity she may have an interest in. Also read | Adani stocks open in red amid Hindenburg-SEBI chief saga What did the report claim? The report published on Saturday (Aug 10), citing whistleblower documents claimed that the SEBI chief had a conflict of interest when the regulator investigated the Adani Group for an earlier 'expose' by Hindenburg. Weeks before Buch's appointment to SEBI, her husband, Dhaval Buch, requested to transfer their investments into his sole control to avoid any scrutiny that may come with the high-profile regulatory job, the report said. The report also highlighted the SEBI chief's role in promoting Real Estate Investment Trusts (REITs) in India - an asset class that significantly benefitted Blackstone, where her husband is a senior adviser. Prior to his adviser role, Dhaval had not worked for a fund, in real estate or capital markets. Watch | SEBI chief vs Hindenburg: Hindenburg links SEBI Chief to Adani report × SEBI chief to quit? According to reliable sources, a big fallout due to the report within the upper hierarchy of SEBI may not be ruled out. Reports indicate that Adani Group has already begun lobbying for the next SEBI chairperson and the name of Dinesh Khara, the recently retired former State Bank of India chief, is doing the rounds. As for the confidence in the Indian markets and economy, especially the foreign investors, the opposition has started pressuring the Indian government to act and remove the SEBI chief. (With inputs from agencies)

'Her response now confirms...': Hindenburg claps back at Madhabi Buch after SEBI chief issues clarification

Hindenburg vs SEBI Chief Saga: SEBI Chief denies all allegations by Hindenburg

Hindenburg vs SEBI Chief Saga: Calls for SEBI Chief's resignation intensify

Hindenburg vs SEBI Chief Saga: SEBI Chief's rebuttal and Hindenburg's counter

Opposition parties in India have strongly reacted to the US-based short-seller Hindenburg's allegations on Securities and Exchange Board of India (SEBI) chairperson Madhabi Puri Buch and the Adani group. In its report, Hindenburg alleged on Saturday (Aug 10) that Buch previously held investments in certain offshore funds that were also used by Adani Group.

SEBI chief vs Hindenburg: Whistle-blower exposes SEBI Chief in new report

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