Hindenburg Report: Is Madhuri Buch's Alleged Adani Links Putting Sebi’s Credibility At Stake?

The Hindenburg Report alleging Sebi Chief Madhabi Buch and her husband's involvement in Adani conglomerate is raising a few eyebrows.

New Delhi: The Hindenburg report published over a week ago, alleged that Madhabi Buch, the current chairperson of Sebi, and her husband had stakes in both obscure offshore funds used in the Adani money siphoning scandal, a claim outrightly rejected by Sebi, its Chief and the Adani group.

Following the release of the Hindenburg on August 10, Buchs and SEBI had released their response via a press release, their only response till date, rebutting all the claims made by the US-based short seller. Added to that, the silence from Sebi's board of directors, Indian market regulator's credibility has taken a nosedive. 

Wion website, citing Reports, said that Madhabi held two meetings with Gautam Adani while the investigation was underway. "In April earlier this year, media reports claimed that investigation against 12 offshore companies that invested in Adani stocks would be settled. A couple of months later, a showcause notice was issued to Hindenburg over its report, which suggests that something had transpired behind the scenes," it added.

After launching a broadside against the chief of market regulator SEBI, alleging that she and her husband had stakes in obscure offshore funds used in the "Adani money siphoning scandal", US short-seller Hindenburg Research said Buch has now publicly confirmed her investment in an obscure Bermuda/Mauritius fund structure.

Demand For Joint Parliamentary Committee Probe

The opposition has also stepped up its attack on the government on the Hindenburg-Sebi issue.
Leader of Opposition in the Lok Sabha, Rahul Gandhi has demanded a Joint Parliamentary Committee (JPC) probe into the charges against Madhabi Puri Buch flowing the series of allegations levelled against the Sebi chief by Hindenburg report. 

The ruling BJP has however dismissed the claims calling it a "sham" aimed at undermining the Indian economy.

Former finance ministry secretary EAS Sarma, in an exclusive chat with WION said that there should be a probe by an independent judicial panel that will examine the alleged links between Adani group and Sebi chairperson Madhabi Puri Buch. 

"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".