SEBI Hindenburg Controversy Explained Here

Hindenburg is back with its tweet on X(Twitter) which mentions “Something Big Soon India”. Everyone was curious to know who is the next target of Hindenburg Research. After a day, the report pointed out SEBI’s chairperson, Madhabi Puri Buch as having a stake in offshore entities linked with Adani Money Scandal. She responds to the reports leading to a new controversy in the market. Let us decode what is happening in the SEBI Hindenburg Controversy.

What Is SEBI Hindeburg Controversy?

SEBI Hindenburg controversy started after the Hinderburg tweeted a detailed report pointing out SEBI chairperson Madhabi Buch’s stakes in the offshore entities linked to Adani stock manipulation. Thus, Hindenburg says it is the main reason behind SEBI favouring Adani even after the reports. Hindenburg claims that SEBI is not taking any action because of the involvement of its chairperson in the matter. What is the context behind the Hinderburg Adani controversy? Let us understand below.

Hinderburg Adani Controversy Context

Hinderburg released a report 1.5 years ago highlighting the scams by the Adani Group. There were several allegations against the Adani Group. However, the main allegation was that Adani Group was using stock manipulation leading to a continuous upward movement of the stocks. It also claimed the use of insider trading by the company. It is a method through which someone knows and uses secret information to gain an advantage in the stock market.

Hindenburg’s report states Gautam Adani’s brother Vinod Adani has invested in some offshore entities. It uses shell entities to gain growth in the company’s stock. The report states that the Adani Group puts their money into the Mauritius funds and these offshore entities. These offshore entities invest back in Adani Group in India. It leads to continuous stock growth as the company shows more foreign entities investing in them. Hindenburg is claiming through its reports that the SEBI chairperson’s offshore funds are linked to the conglomerate.

Apart from that, there was also a consultation firm of Madhabi Puri by the name Agora Partners. She transferred a complete share of the firm to her husband’s name two weeks after she became the chairperson. While SEBI alleged that Hindenburg was violating the SEBI regulations. The research firm in return states that the report is backed by corroboration from over 40 independent media. Still, SEBI did not take any action against Adani Group.

What Did Madhabi Buch And Her Husband Say On The Hindenburg’s Report?

Madhabi Buch and her husband Dhaval Buch deny all the allegations in a joint statement. They further continued and said, “All Disclosures as required have already been furnished to SEBI over the years.”