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PremiumHindenburg-Adani Case Live: The research firm suggested that this transparency would clarify whether there are any connections between these clients and the entities SEBI is responsible for regulating. Hindenburg also claimed that Buch's response confirmed one of their allegations: that an offshore fund associated with Buch was managed by her husband Dhaval Buch's childhood friend, who is also a director in the Adani Group. This, according to Hindenburg, represents a significant conflict of interest.
Hindenburg-Adani Case Live: Indian REITs Association on Monday said that claims made by the US-based short seller Hindenburg Research suggesting that the REIT framework made by markets regulator Sebi serves the interests of a select few are "baseless and misleading".
In fact, the association has commended Sebi and its leadership for crafting a "rigorous regulatory environment" that includes comprehensive periodic reporting requirements, mandatory independent valuations, and strict governance standards.
BJP leader Ravi Shankar Prasad in a press conference claimed that George Soros was behind the Hindenburg report to destabilise the Indian economy.
He said, "Today we want to raise some issues. Whose investment is there in Hindenburg? Do you know this gentleman George Soros who regularly runs propaganda against India...He is the main investor there...In their pathological hatred against Narendra Modi, the Congress Party today has developed hatred against India itself."
The Sensex and Nifty indices recovered early losses after a sharp decline in Adani Group shares during morning trade, triggered by allegations from Hindenburg Research. Adani Energy Solutions experienced the steepest drop, falling 17 percent, followed by Adani Total Gas at 13 percent, New Delhi Television (NDTV) and Adani Power both at 11 percent. Other Adani-linked stocks, including Adani Ports and Special Economic Zone, Adani Wilmar, ACC, and Ambuja Cements, saw declines ranging from 2 percent to 7 percent. However, the company’s shares later showed significant recovery, with losses narrowing to between 1 percent and 5 percent.
SEBI has clarified that its chairperson has fully disclosed her holdings and consistently recuses herself from matters where a conflict of interest may arise.
Short-selling firm Hindenburg Research has leveled serious accusations against Madhabi Buch, the current Chairperson of the Securities and Exchange Board of India (SEBI). The allegations challenge Buch's previous statements regarding her business interests.
According to our sources, Buch had earlier stated that two consulting firms she founded—one in India and another in Singapore—became inactive following her 2017 appointment to SEBI. She further claimed that her husband assumed control of these businesses in 2019.
However, Hindenburg's report paints a different picture. The firm alleges that Buch retains a 99% ownership stake in the Indian entity, Agora Advisory Limited. Contrary to previous assertions, this company is reportedly active and generating consulting revenue.
Adani Group stocks have declined by nearly 4% following the release of the latest Hindenburg report. This drop comes after significant losses in 2023, when the group lost over $10 million in market value due to a previous report by Hindenburg. The recent report has reignited concerns, leading to another downturn in the company’s stock performance.
In response, SEBI chairperson Madhabi Buch denied the allegations, stating that Hindenburg's claims were baseless and that her financial records were fully transparent.
The Adani Group also responded to the Hindenburg report, describing it as a "malicious, mischievous, and manipulative selection of publicly available information." They asserted that the claims had already been discredited by the Supreme Court and accused Hindenburg of being a "discredited short-seller" attempting to deflect attention from its own violations of Indian securities laws.
