Hindenburg Allegations: SEBI Chairperson Madhabi Puri Buch Denies Allegations Of Conflict Of Interest, Confirms Compliance With Disclosure Requirements

Securities and Exchange Board of India (SEBI) Chairperson Madhabi Puri Buch has vehemently denied allegations made by US-based short seller Hindenburg Research.

The allegations pertain to her and her husband's alleged stakes in obscure offshore entities linked to the Adani Group, raising questions about potential conflicts of interest.

In a joint statement issued on August 10, 2024, Buch and her husband, Dhaval Buch, stated, "In the context of allegations made in the Hindenburg Report dated August 10, 2024, against us, we would like to state that we strongly deny the baseless allegations and insinuations made in the report. The same are devoid of any truth."

The Buchs further emphasized that they have always been compliant with the disclosure requirements under the law. They said, "Our life and finances are an open book. All disclosures as required have already been furnished to SEBI over the years."

Responding to the allegations, Buch and her husband said, "It is unfortunate that Hindenburg Research against whom SEBI has taken an Enforcement action and issued a show cause notice has chosen to attempt character assassination in response to the same."

The allegations against the SEBI Chairperson come at a time when the Adani Group has been under scrutiny following Hindenburg Research's damning report in January 2023. The report accused the Adani Group of financial irregularities, leading to a significant drop in the company's stock price. The Adani Group has repeatedly denied all the accusations made in the Hindenburg Research report.

In response to petitions filed by activists the Supreme Court had ruled that there was no regulatory failure on part of SEBI, allowing the latter to carry on its investigations about the allegations made by Hindenburg Research in 2023.