360 One claims ’zero investment’ in Adani Group stocks, says no investor involvement in fund operations

US short-seller Hindenburg Research claimed that on June 5, 2015, Madhabi Puri Buch, the chief of the Securities and Exchange Board of India (SEBI), and her husband Dhaval Buch opened an account with Mauritius-based IPE Plus Fund 1, a fund allegedly involved in siphoning money.

One day after the Hindenburg report was released, 360 One (formerly known as IIFL Wealth) issued an exchange notification clarifying that during its entire tenure, the IPE-Plus Fund 1 did not make any investments in Adani Group shares, either directly or indirectly through any fund.

Here are six things the company told the exchanges on August 11 -

1. IPE-Plus Fund 1, a fully compliant and regulated fund, was launched in October 2013 and operated until October 2019.

2. Throughout the fund's tenure, IPE-Plus Fund 1 made zero investments in any shares of the Adani Group either directly or indirectly through any fund.

3. At its peak, the fund's Assets Under Management (AUM) reached approximately USD 48 million, with over 90 percent of the fund consistently invested in bonds.

4. The fund was managed as a discretionary fund by the Investment Manager. No investor had any involvement in the fund's operations or investment decisions. Mrs. Madhabi Buch & Mr. Dhaval Buch's holdings in the fund were less than 1.5% of the total inflow into the fund.

5. All other points mentioned in the report are repetitive and have been adequately clarified in previous communications.

6. 360 ONE Asset Management reaffirms that all its funds are fully compliant with all applicable regulations, and we adhere to the highest standards of corporate governance.

The allegation related to IPE-Plus Fund 1 and 360 One (formerly IIFL Wealth) is part of a broader report by Hindenburg, which references whistleblower documents accusing Madhabi Puri Buch and her husband of holding stakes in offshore funds invested in the Adani Group.

According to the report, Hindenburg stated that Buch opened an account with Mauritius-based IPE Plus Fund 1 on June 5, 2015. The report further claims that Buch, who became a Sebi Whole-Time Member in 2017 and Chairperson in 2022, contacted IIFL in 2018 via her private email to redeem units from the IPE Plus Fund 1.

"We find it unsurprising that Sebi was reluctant to follow a trail that may have led to its own chairperson," the Hindenburg report said.