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On 28 February 2022, Madhavi Buch was appointed as the Chairperson of SEBI.
On Thursday (August 22) at Jantar Mantar, Delhi Congress will protest against the Hindenburg report that came on August 10. This report claimed that SEBI Chief Nirmala Buch had stakes in shadowy offshore entities used in the money laundering scandal through the Adani Group.
Congress chief Devendra Yadav and Congress spokesperson Supriya Shrinate said that SEBI chief Madhavi Buch should resign from her post and a JPC should be formed for fair investigation of the Adani case.
Dhabi Buch denies the allegations
Madhavi Buch has said that the allegations levelled against her in the Hindenburg report are baseless and an attempt to defame her character. The SEBI chairperson expressed her willingness to declare all financial records. In a joint statement with her husband Dhaval Buch, she said, ‘Our lives and finances are an open book.
Based on whistleblower documents, Hindenburg had claimed that Buch and her husband had stakes in Mauritius-based offshore company ‘Global Dynamic Opportunity Fund’. Hindenburg Research came into the news last year by accusing Adani Group of financial irregularities.
Highlights from Hindenburg’s new report
- It has been almost 18 months since our report on the Adani Group. The report presented strong evidence that the Adani Group was conducting the biggest scam in corporate history.
- Our report exposed a web of offshore, primarily Mauritius-based shell entities that were used to carry out billions of dollars worth of suspicious undisclosed related party transactions, undisclosed investments and stock manipulation.
- Apart from all the evidence, our report was confirmed by more than 40 independent media investigations. Despite this, SEBI did not take any public action against the Adani Group.
- In July 2024, SEBI sent us a show cause notice. In response to which we wrote that we found it strange how SEBI, despite being a regulator, was set up to protect fraudulent practices.
- SEBI showed little interest in investigating the parties involved in the fraudulent practices. They ran a secret offshore shell empire that engaged in billions of dollars of undisclosed related party transactions through public companies and inflated their shares through a network of dummy investment entities.
- The ‘IPE Plus Fund’ is a small offshore Mauritius fund set up by the Adani director through India Infoline (IIFL), a wealth management firm linked to the Wirecard scandal.
- Vinod Adani, brother of Gautam Adani, used this structure to invest in the Indian markets, using funds raised by the Adani Group from over-invoicing of power equipment.
- The SEBI chief and her husband Dhawal Buch had stakes in obscure offshore Bermuda and Mauritius funds. Vinod Adani also used offshore Bermuda and Mauritius funds as a structure.
- According to the documents, Madhabi Buch and her husband Dhaval Buch first opened their account in IPE Plus Fund-1 in Singapore on June 5, 2015.
Adani Group said- we do not have business relations with those whose names were mentioned by Hindenburg
On the Hindenburg report, the Adani Group had said, the group has no business relations with the SEBI chief. The group also has no transactions with the people whose names have been taken with the SEBI chief. The questions raised on foreign holdings are baseless. The structure of the group’s foreign holdings is completely transparent. It was not used for money manipulation.
The group said- Hindenburg misused publicly available information for its own benefit. The allegations leveled against the Adani Group have already been proven baseless. After a thorough investigation, the Supreme Court dismissed Hindenburg’s allegations in January 2024.
Adani Group was accused of money laundering and share manipulation
On 24 January 2023, Hindenburg Research published a report on the Adani Group. After the report, there was a huge decline in the shares of the group. However, there was a recovery later. Regarding this report, the Indian stock market regulator Securities Exchange Board of India (SEBI) had also sent a 46-page show cause notice to Hindenburg.
In a blog post published on July 1, 2024, Hindenburg Research said that the notice states that it has violated the rules. The company said, SEBI has alleged that Hindenburg’s report contains some false statements to mislead readers. In response to this, Hindenburg had made several allegations against SEBI itself.
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