Hindenburg report links Sebi chief Madhabi Puri Buch to 'offshore funds used in Adani scandal': 10 points

Hindenburg Research, the American short-seller that previously accused Adani Group of financial irregularities, has made new allegations involving SEBI Chairperson Madhabi Puri Buch. On Saturday, Hindenburg claimed in a blog post that Buch and her husband, Dhaval Buch, held stakes in "obscure offshore funds" tied to the Adani scandal.

Hindenburg accused SEBI of showing a lack of interest in probing Adani's offshore entities due to Buch’s financial involvement. The allegations have sparked reactions, with calls for further investigation into SEBI's handling of the case. 

Here are ten key points about the latest developments:

1. Hindenburg Research alleges that Madhabi Puri Buch and her husband had stakes in offshore funds used in the Adani Group's money siphoning scandal.

2. The American firm claims these offshore funds, based in Bermuda and Mauritius, were controlled by Vinod Adani, Gautam Adani's elder brother, and were used to inflate Adani Group companies' stock prices.

3. Hindenburg cited an IIFL document estimating the couple's net worth at $10 million, with their investments reportedly coming from salary income.

4. The firm criticised SEBI's handling of the investigation, suggesting that Buch’s financial interest could explain the regulator's reluctance to thoroughly probe Adani's offshore entities.

5. Hindenburg alleged that SEBI's investigation had "drawn a blank" on identifying who funded Adani's offshore shareholders, hinting at a potential conflict of interest.

6. The blog post suggested that if SEBI wanted to find the offshore fund holders, the Chairperson could have started by looking into her own investments.

7. The firm referenced a previous statement about Adani's confidence in operating without significant regulatory intervention, which it now links to Buch's role in SEBI.

8. Madhabi Puri Buch and her husband have denied the allegations, calling them baseless and asserting that their finances are transparent and disclosed to SEBI.

9. In response to the allegations, Congress demanded immediate government action to address potential conflicts of interest in SEBI's investigation of Adani Group.

10. Congress also called for the formation of a Joint Parliamentary Committee (JPC) to investigate the full scope of the Adani scandal, citing concerns over possible complicity at the highest levels of government.

With inputs from agencies