A new report by Hindenburg Research has once again created an uproar in India. In the report, the finger has been pointed towards the chairperson of the country’s stock market regulator ‘Securities and Exchange Board’ (SEBI). Hindenburg claims that Sebi chief Madhavi Puri Buch did not properly investigate the group because of its association with the Adani group.
In a 2023 report, US-based firm Hindenburg Research accused the Adani Group of share price manipulation. After the publication of that report, there was an uproar in India. Adani Group faced huge financial losses.
At one point, under pressure, the Securities and Exchange Board of India, headed by Madhavi Puri Buch, began investigating the allegations against the group. But their investigation found no truth in the allegations against Adani.
In a fresh report on Saturday, Hindenburg alleged that Sebi had not properly investigated the Adani Group because of the company’s top management’s involvement.
The Hindenburg report says Madhavi was once a partner in Adani’s venture using funds from two overseas firms. That is why SEBI did not find any trace of ownership of foreign funds by investigating as per Hindenburg report.
According to Hindenburg’s new probe, Madhavi had a stake in Gautam Adani’s brother Vinod Adani’s foreign firm. According to reports, Madhavi and Dhabal invested in two funds in Bermuda and Mauritius. The money of that fund is diverted to Adanid’s organization. This is how the share price of Adani Group is increased. Madhavi joined SEBI in 2017. Even though she left the fund before that, in 2018 she sold the unit through a personal e-mail in her husband’s name. This is why the Securities and Exchange Board of India has shown no interest in looking into the ownership of foreign funds.
According to Hindenburg, the Sebi chief should look in the mirror to find ownership.
Ever since the report was published, Tulkalam has fallen in India. The country’s opposition leaders have come forward with this. They accused the central government of covering up corruption.
India’s main opposition Congress president Mallikarjun Kharge said in a tweet that Sebi had cleared Adani even before the Hindenburg report came out in 2023. Now the name of the SEBI chief is associated with it. It is necessary to form a joint parliamentary committee to investigate this scandal. Until then, there are fears that Prime Minister Narendra Modi will continue to protect his ally.
Source: Reuters, Financial Times
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