New Delhi: In a huge development which can have big effect on Indian stock markets on August 12, 2024, US short-seller Hindenburg Research has alleged that market regulator (Securities and Exchange Board of India (Sebi) chairperson Madhabi Buch and her husband had stakes in obscure offshore funds used in Adani money siphoning.
“SEBI has shown a surprising lack of interest in Adani’s alleged undisclosed web of Mauritius and offshore shell entities,” in a blogpost, Hindenburg said 18 months since its damning report on Adani.
Hindenburg cited “whistleblower documents”, stating that the current Sebi chief and her husband had had stakes in obscure offshore funds used in Adani scandal.
“Madhabi Buch, the current chairperson of SEBI, and her husband had stakes in both obscure offshore funds used in the Adani money siphoning scandal,” it mentioned.
Hindenburg claimed that the obscure offshore Bermuda and Mauritius funds, which are reportedly controlled by elder brother of Gautam Adani are alleged to have been used to round-trip funds and inflate stock price.
“A declaration of funds, signed by a principal at IIFL states that the source of the investment is ‘salary’ and the couple’s net worth is estimated at USD 10 million,” Hindenburg further stated.
Sebi is yet to react to the Hindenburg report on Buch.
Hindenburg has accused Gautam Adani-led Adani Group of pulling “the largest con in corporate history”. The allegations were categorically rejected by the company and Gautam Adani himself. However, the report had led to the downfall of group’s shares into a free fall. Notably, most of the 10 listed companies of Adani Group have since regained.
After the Hindenburg report, the Supreme Court asked Sebi to complete its probe investigation and set up a separate expert panel to look into regulatory lapses. Importantly, the panel’s report did not say anything against Adani Group and the apex court was also of view that no other investigation other than the one being done by the stock market regulator was required.
Sebi had informed the Supreme Court-appointed panel that it was probing 13 opaque offshore entities that held between 14 per cent and 20 per cent across five publicly traded stocks of the conglomerate. The market regulator is yet to give information about the two incomplete probes have since been completed.
“The current SEBI Chairperson and her husband, Dhaval Buch, had hidden stakes in the exact same obscure offshore Bermuda and Mauritius funds, found in the same complex nested structure, used by Vinod Adani,” Hindenburg said.
Hindenburg claimed that the documents received from the whistleblower state that just weeks ahead of her wife being appointed SEBI chairperson her husband on March 22, 2017 wrote an email to Mauritius fund administrator Trident Trust. The email was regarding his and his wife’s investment in the Global Dynamic Opportunities Fund (GDOF), it said.
“In the letter, Dhaval Buch requested to “be the sole person authorised to operate the Accounts”, seemingly moving the assets out of his wife’s name ahead of the politically sensitive appointment,” it alleged.
“In a later account statement dated February 26th, 2018, addressed to Madhabi Buch’s private email, the full details of the structure are revealed: “GDOF Cell 90 (IPEplus Fund 1)”. Again, this is the exact same Mauritius-registered “cell” of the fund, found several layers deep in a convoluted structure, reportedly used by Vinod Adani,” it alleged.
Hindenburg has alleged that Sebi head Madhabi Buch and her husband had stakes in obscure offshore funds used in Adani money siphoning. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
