Budget 2024 Hindenburg Adani Case – A recent investigative report from a US-based short seller has claimed that the chairperson of SEBI possessed an interest in obscure offshore entities implicated in the Adani money siphoning scandal. union budget 2024 india 

Hindenburg-Adani Case LIVE Updates: Madhabi Puri Buch, the chairperson of Sebi, along with her husband Dhaval Buch, has refuted the claims made by the US-based short-seller Hindenburg Research in its recent report, labeling them as ‘unfounded’ and an effort at ‘character assassination.’

“We wish to emphasize that we categorically reject the unfounded allegations and implications presented in the report. These claims lack any basis in truth. Our personal and financial matters are transparent. All necessary disclosures have been provided to SEBI over the years,” stated Madhabi and Dhaval Buch.

Additionally, they asserted that Hindenburg Research has opted to engage in ‘character assassination’ following Sebi’s enforcement actions and a notice issued to them, indicating that a comprehensive statement will be released in due course.

Hindenburg Research, a short-selling firm based in the United States, has claimed in its latest investigative report that Madhabi Puri Buch, the chairperson of SEBI, held interests in lesser-known offshore entities implicated in the alleged ‘money siphoning scandal’ involving Adani.

In a recent statement, Congress General Secretary Jairam Ramesh emphasized the urgent need for the government to address and resolve any conflicts of interest in the SEBI investigation concerning Adani.

He remarked on SEBI’s notable hesitance to probe the Adani MegaScam, a concern that has been acknowledged by the Supreme Court’s Expert Committee. The Committee’s report highlighted that SEBI had weakened reporting requirements regarding the ultimate beneficial ownership of foreign funds in 2018 and completely eliminated them in 2019. This action has constrained SEBI’s ability to act, leading to a situation where the securities market regulator suspects misconduct but struggles to comply with various regulatory stipulations. The Expert Committee noted that this conflict has resulted in SEBI failing to achieve any significant outcomes on a global scale.

In response to public outcry, following the significant developments surrounding Adani, SEBI’s board reinstated more stringent reporting regulations on June 28, 2023. On August 25, 2023, it informed the Expert Committee that it was investigating 13 transactions deemed suspicious; however, these investigations have yet to yield any substantial results.

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The recent disclosures from Hindenburg Research indicate that SEBI Chairperson Madhabi Puri Buch and her spouse have invested in the same offshore funds located in Bermuda and Mauritius as those utilized by Vinod Adani and his close associates, Chang Chung-Ling and Nasser Ali Shahban Ahli. These funds are reportedly derived from the over-invoicing of power equipment and are suspected to have been employed to acquire significant shares in Adani Group companies, contravening SEBI regulations. It is indeed alarming that Buch has a financial interest in these identical funds.

This situation prompts renewed scrutiny regarding Gautam Adani’s two meetings with Ms. Buch in 2022, which occurred shortly after her appointment as SEBI chairperson. It is noteworthy that SEBI was purportedly conducting an investigation into Adani’s transactions during that period.

The government must take prompt action to address any potential conflicts of interest in SEBI’s investigation of Adani. The apparent involvement of high-ranking officials necessitates the establishment of a Joint Parliamentary Committee (JPC) to thoroughly examine the extensive implications of the Adani MegaScam.