Hindenburg Research has leveled new allegations against Madhabi Buch, the current Chair of the Securities Exchange Board of India (SEBI), claiming that both she and her husband, Dhaval Buch, held stakes in offshore funds connected to the Adani Group. These funds were initially highlighted in Hindenburg’s previous report, which scrutinized the conglomerate’s financial dealings.
The latest report from Hindenburg suggests a potential conflict of interest between Madhabi Buch’s role as the head of SEBI and her personal financial involvements. It references the Supreme Court’s observation that SEBI’s efforts to identify the true holders of these offshore funds had been fruitless. Hindenburg alleges that this failure may be due to Madhabi Buch and her husband being among the beneficiaries of these funds, particularly during her tenure as a full-time member of SEBI.
Additionally, the report claims that regulatory changes favorable to real estate investment trusts (REITs) were implemented during Buch’s time at SEBI. These changes allegedly benefited REIT entities in which Dhaval Buch held substantial positions. Hindenburg supports its claims with whistleblower documents, including personal emails, account statements, and fund details.
In response to the report, SEBI released a statement drawing attention to a disclaimer in Hindenburg’s document, which notes that the research firm might hold short positions in the securities mentioned. SEBI emphasized that ongoing proceedings against the Adani Group are before a quasi-judicial authority, and therefore, the regulatory body refrains from commenting on the matter at this time.
SEBI also defended its regulatory changes related to REITs, asserting that all modifications were made following due process and were intended to promote the development of the securities market in India. The regulatory authority further stated that it has robust mechanisms in place to address any conflict of interest, ensuring that Madhabi Buch recused herself in instances where conflicts arose.
Finally, SEBI reiterated its commitment to maintaining a regulatory framework that aligns with global best practices and ensures the protection of investors.
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