Hindenburg Exposes SEBI Chief: Hindenburg Research is back in the spotlight with another explosive report, this time turning its attention to Madhabi Puri Buch, the Chairperson of SEBI, and her husband, Dhaval Buch. The report doesn’t hold back, alleging conflicts of interest and raising serious concerns about questionable financial dealings. According to Hindenburg, these issues are tied to offshore funds that have connections to the Adani Group, the same entity they previously scrutinized. This new report is sure to stir up significant debate and may have far-reaching implications. Stay with us as we unpack the details, explore the potential fallout, and guide you through what this could mean for the financial landscape in India.
Hindenburg’s Concerns About SEBI’s Inaction
Hindenburg’s initial report on the Adani Group in January 2023 caused a significant drop in Adani Group’s stock prices. The report alleged that the Adani Group used offshore entities to manipulate its stock prices. Despite extensive media coverage and investigation into these claims, SEBI did not take any public action. Instead, it issued a show-cause notice to Hindenburg in June 2024, questioning the adequacy of their disclosures.
NEW FROM US:
Whistleblower Documents Reveal SEBI’s Chairperson Had Stake In Obscure Offshore Entities Used In Adani Money Siphoning Scandalhttps://t.co/3ULOLxxhkU
— Hindenburg Research (@HindenburgRes) August 10, 2024The Alleged Misuse of Offshore Funds
The Hindenburg report details how two offshore funds, one based in Bermuda (Global Dynamic Opportunities Fund or GDOF) and another in Mauritius (IE Plus Fund), were allegedly used to invest in the Indian stock market through equity, equity derivatives, and other financial instruments. The twist is that Madhabi Puri Buch and her husband, Dhaval Buch, were invested in both these funds.
Conflicts of Interest: A Timeline
Hindenburg presents a series of events to highlight the alleged conflicts of interest:
- June 2015: Madhabi Puri Buch and Dhaval Buch open an account with the IE Plus Fund.
- April 2017: Madhabi Puri Buch joins SEBI as a whole-time member. Dhaval Buch requests the IE Plus Fund to transfer their joint holdings solely to his name.
- February 2018: Documents show Dhaval Buch’s and Madhabi Puri Buch’s involvement with the GDOF fund, even though she was a whole-time member of SEBI at that time.
- March 2013: Madhabi Puri Buch is shown as the 100% shareholder of Agora Partners, a company registered in Singapore.
- March 2022: Madhabi Puri Buch becomes the Chairperson of SEBI but remains the 100% shareholder of Agora Partners until March 16, 2022.
- 2019: Dhaval Buch is appointed as a Senior Advisor at Blackstone, an American company, despite having no prior experience in finance or capital markets.
The REIT Connection
Hindenburg’s report also draws attention to Madhabi Puri Buch’s public endorsement of Real Estate Investment Trusts (REITs) as a favorable investment product. Since becoming SEBI Chairperson, she has introduced several regulatory changes favoring REITs. Coincidentally, Blackstone has launched two REITs in India during this time. Hindenburg alleges a conflict of interest, suggesting that Blackstone hired Dhaval Buch to influence SEBI’s decisions regarding REITs.
Conclusion
The Hindenburg report raises serious questions about the SEBI Chairperson’s potential conflicts of interest and her husband’s involvement in financial dealings linked to the Adani Group. It calls for a strong response from Madhabi Puri Buch to address these allegations with factual evidence.
Hindenburg Exposes SEBI Chief report has once again brought the Adani Group saga back into the spotlight, highlighting the need for transparency and accountability in India’s financial markets. The public awaits a clear and objective response from the SEBI Chairperson to put these concerns to rest.
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