Hindenburg Research, the US short-seller has levelled allegation against Securities and Exchange Board of India (Sebi) chairperson Madhabi Puti Buch in its new report saying that Sebi chief and her husband have stakes in obscure offshore funds in Bermuda and Mauritius which have ties with Adani companies. The allegations have been refuted by Puri-Buch but they have stirred the business and political environment in the country.
Political leaders in opposition ranks are lashing out against the government over Hindenburg allegations. All India Congress Committee (AICC) general secretary Jairam Ramesh used a Latin phrase to raise questions about the revelations.
“Quis Custodiet Ipsos,” he posted on social media platform X. The sentence means ‘who will guard the guard himself’, hinting that market regulator Sebi itself needs supervision.
Quis Custodiet Ipsos
Custodes https://t.co/2r043wRiFl
— Jairam Ramesh (@Jairam_Ramesh) August 10, 2024
Aam Aadmi Party leader and former deputy chief minister of Delhi Manish Sisodia lashed out at central government led by Prime Minister Narendra Modi. He said that Hindenburg’s allegations were proof that this government is being run for the benefit of handful of businessmen.
अगर ये खुलासे सच हैं तो समझ में आसानी से आ ज़ाता है कि विकसित भारत का जुमला किस के विकास के लिए दिया जा रहा है।
लेकिन तानाशाही के दौर में क्या “अगर ये खुलासे सच हैं” की जाँच हो पाएगी?
क्या ED और CBI कभी इसकी कोई जाँच करने की हिम्मत भी दिखा पायेंगे? या ED-CBI सिर्फ़ विपक्ष के… pic.twitter.com/CxBOxxHSdV
— Manish Sisodia (@msisodia) August 11, 2024
Mahua Moitra, the Trinamool Congress MP, asked CBI and Enforcement Directorate (ED) if the agencies were going to register a complaint against Adani.
In true Adani style – even SEBI Chairman is investor in his group. Crony Capitalism at its finest. @CBiHeadquarters & @Dir_ED – will you be filing POCA and PMLA cases or not?
— Mahua Moitra (@MahuaMoitra) August 10, 2024
What has Hindenburg said?
After teasing a big expose on August 10, Hindenburg published what it said were its findings late on the same day.
“We had previously noted Adani’s total confidence in continuing to operate without the risk of serious regulatory intervention, suggesting that this may be explained through Adani’s relationship with SEBI Chairperson, Madhabi Buch,” Hindenburg said.
Hindenburg-SEBI Scandal: Has The Market Regulator’s X Account Been Locked Out For Public?
“What we hadn’t realized: the current SEBI Chairperson and her husband, Dhaval Buch, had hidden stakes in the exact same obscure offshore Bermuda and Mauritius funds, found in the same complex nested structure, used by Vinod Adani,” it added.
Hindenburg said that its assertions were made based on documents obtained by a whistleblower.
What has Sebi chairperson said?
Puri-Buch released a joint statement with husband refuting Hindenburg’s allegations.
“…we strongly deny the baseless allegations and insinuations made in the report. The same are devoid of any truth. Our life and finances are an open book. All disclosures as required have already been furnished to SEBI over the years. We have no hesitation in disclosing any and all financial documents, including those that relate to the period when we were strictly private citizens, to any and every authority that may seek them. Further, in the interest of complete transparency, we would be issuing a detailed statement in due course…” they said.
