In Short:
Hindenburg Research accused Madhabi Puri Buch, Chairperson of SEBI, and her husband of investing in offshore funds linked to the Adani cash siphoning scandal. Documents showed they had stakes in risky offshore funds connected to Adani entities. Buch transferred stakes in offshore funds to her husband before her SEBI appointment. The report raises concerns about conflicts of interest and unethical practices.
The Intriguing Allegations Against Madhabi Puri Buch by Hindenburg Research
Hindenburg Research, a notable hedge fund, has made startling allegations against Madhabi Puri Buch, the Chairperson of the Securities Exchange Board of India (SEBI). According to them, Buch and her husband held stakes in offshore funds with connections to entities involved in the alleged Adani cash siphoning scandal.
The Allegations
In a detailed report, Hindenburg Research highlighted that despite the availability of numerous mainstream Indian mutual fund options, Buch and her husband were linked to offshore funds with minimal assets in high-risk jurisdictions. These funds were managed by a company associated with the Wirecard scandal and were used by an Adani director in the controversial cash siphoning debacle.
Basis of the Allegations
The allegations presented by Hindenburg Research were based on documents provided by a whistleblower and investigations conducted by various entities. For instance, a previous investigation by Adani Watch exposed how offshore entities controlled by Vinod Adani had received funds from over-invoicing of power equipment. It was revealed that Buch and her husband had investments in the same offshore funds as Vinod Adani, hidden through complex structures.
The Revelations
The research brought to light that Buch and her husband had stakes in Bermuda and Mauritius funds related to Vinod Adani. Documents showed that they made investments in these funds just before Madhabi Buch’s appointment as a “Whole Time Member” of SEBI, raising questions about possible conflicts of interest.
Key Observations
The report by Hindenburg Research also highlighted instances where Buch’s ownership in offshore funds was evident. It pointed out how she had transferred her stake in a Singapore-based consultancy to her husband, hinting at attempts to conceal potential conflicts of interest.
Conclusion
These allegations cast a shadow over Madhabi Puri Buch’s credibility as the Chairperson of SEBI. The intricate web of offshore investments and questionable transactions raises concerns about ethical practices and regulatory oversight in the Indian financial sector.
