Hindenburg Allegations Against Sebi Chief: Will Stock Market Investors’ Wealth Be Affected? Market Guru Anil Singhvi Explains

File Photo

New Delhi: Zee Business Managing Editor Anil Singhvi has cautioned the revelations and allegations will eclipse investment sentiments in the market. He added that the news may affect both investor sentiment and wealth. Terming it as a ‘serious matter for the market’, Singhvi said that market participants will be ‘closely tracking headlines on the matter as transparency is very important for the market’.

Singhvi further added that the situation is going to be tough. He added, “It will be a tough call whether the Sebi chairperson should stay at the helm of the powerful institution that Sebi is at least until any likely investigation is underway” 

Further opining that the case might instill in some sort of doubts amongst investors, Singhvi said, "Doubts will likely emerge among investors as the news follows Sebi's clean chit to Adani... Hindenburg had shared a cryptic message on X (formerly Twitter) that it would come up with 'something big' on India, but nobody would have thought about possible connections between the Sebi chief and Adani," said Singhvi. 

The market guru also asserted that the turn of events will spell big repercussions for the market “Although the Sebi chairperson has asserted that she is ready to reveal "any and all" documents needed in relation to this matter, it may still be a big setback for the market, the market guru added.” 

Hours after teasing a cryptic post on X “Something big soon India,” US Based short seller Hindenburg Research has come out with new 'whistleblower documents'. As per the Hindenburg Research documents, market regulator Securities and Exchange Board of India (SEBI) chairperson Madhabi Puri Buch and her husband Dhaval Buch had stakes in in offshore funds linked to the Adani Group.

The Sebi chief and her husband termed the allegations as ‘baseless’ stating that its an attempt of ‘character assassination’ by the US based short seller. “In the context of allegations made in the Hindenburg Report dated August 10, 2024 against us, we would like to state that we strongly deny the baseless allegations and insinuations made in the report," Madhabi Puri Buch said in a statement.

Meanwhile, the Adani group too has out rightly rejected the allegations made by Hindenburg, condemning it as both malicious and manipulative. Adani group said that company and its overseas holding structure is fully transparent, with all relevant details regularly disclosed in public documents. Hence, the Adani Group has condemned the claims as. 

"The latest allegations by Hindenburg are malicious, mischievous and manipulative selections of publicly available information to arrive at pre-determined conclusions for personal profiteering with wanton disregard for facts and the law. We completely reject these allegations against the Adani Group which are a recycling of discredited claims that have been thoroughly investigated, proven to be baseless and already dismissed by the Hon'ble Supreme Court in January 2024," the Adani Group said in its statement.