Accusations
Conflict of Interest
Hindenburg Research alleges that Madhabi Puri Buch and her husband Dhaval Buch have stakes in offshore funds connected to the Adani Group, suggesting a conflict of interest.
The short seller claims this could have influenced SEBI's investigation into the Adani Group's insider trading and market violations.
Offshore Investments
Hindenburg's documents point to investments made by the Buchs in Bermuda and Mauritius-based funds.
They claim these investments are linked to stock manipulation by Adani associates, raising concerns about SEBI's impartiality.
Professional Engagements
The report accuses Ms. Buch of retaining control over a consulting firm during her tenure at SEBI, which allegedly violated SEBI's conflict of interest rules.
They also criticize Dhaval Buch’s role at Blackstone, suggesting it benefited from changes approved by SEBI.
How is Blackstone involved?
Hindenburg claims Dhaval Buch’s appointment at Blackstone in 2019, despite his lack of experience in real estate or fund management, is suspicious.
They allege that Blackstone, a major real-estate investment trust (REIT) sponsor, benefited from SEBI's policy changes under Ms. Buch’s leadership.
Investigation by SEBI into the Adani Group
The Supreme Court ordered SEBI to investigate Hindenburg’s earlier report on the Adani Group.
SEBI was directed to probe whether there were legal violations resulting from the short seller’s claims.
SEBI has issued a show cause notice to Hindenburg and has completed one of the two main investigations ordered by the Supreme Court.
The second investigation is nearing completion.
SEBI’s Stance
SEBI has rejected Hindenburg’s accusations as inappropriate and emphasized that their actions are guided by regulatory protocols.
They have refuted claims of bias and are continuing their probe into both Hindenburg’s allegations and the Adani Group’s practices.
No Transfer of Investigation
The Supreme Court decided against transferring the investigation to other agencies like the SIT or CBI but reserved the right to intervene if SEBI shows deliberate inaction.
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