American short seller repeats assault on Indian conglomerate

(MENAFN) Hindenburg Research, a United States-based investment firm known for its activist short selling, has renewed its allegations against the Indian conglomerate Adani Group, claiming that the chairperson of India’s Securities and Exchange Board of India (SEBI) was compromised. According to a report released by Hindenburg on Saturday, SEBI chairperson Madhabi Puri Buch and her husband, Dhaval Buch, were involved in trading shares linked to offshore funds implicated in the financial misconduct alleged to involve Adani Group.

The accusations by Hindenburg build upon their initial bombshell report from early last year, which revealed purported financial irregularities within Adani Group and led to a dramatic fall in the conglomerate’s share price. Hindenburg’s latest report alleges that the Buchs held interests in “obscure offshore funds” used by Adani Group, which is led by Gautam Adani. These funds were reportedly exposed in Hindenburg’s earlier investigations as part of a “stock market manipulation” scheme.

The report also cites "whistleblower documents" suggesting that these offshore entities were utilized by Vinod Adani, Gautam's brother, to divert funds. Hindenburg criticized SEBI for its "surprising lack of interest" in investigating Adani’s complex web of offshore and Mauritius-based entities, further complicating the regulatory oversight of Adani Group's activities.

The ongoing controversy underscores the tension between activist investors and major corporate entities, and raises questions about regulatory integrity and market transparency in India.

MENAFN12082024000045015687ID1108544084