When it comes to raising the pitch, Hindenburg Research perhaps has very few parallels but when it comes to delivering on the promise, it falls miles behind. That precisely seems to be the image the US-based short seller has created for itself by first triggering adrenaline of millions of Indians with its cryptic post on X on August 10 “Something Big on India Soon” and then coming up with the allegation that the SEBI chief had financial interests in “obscure offshore entities used in Adani Money siphoning scandal” to link the allegedly tardy progress in the Adani investigations. The proverbial bang was not even backed up by a whimper.
Former chief economic adviser to the government of India, Krishnamurthy V Subramanian, has already come out in favour of Madhabi Puri Buch strongly. “I’ve personally known SEBI Chairperson Madhabi for about two decades. Given her unimpeachable integrity and her intellectual prowess, I’m sure she will shred to smithereens this Hindenberg hit job,” he wrote on social media.
Hardly any illegality
A reading of what Hindenburg has published makes it quite clear that there is hardly any illegality in what the SEBI chief had done. It is certainly high on inuendoes but experts are suggesting that routine investment instruments have been injected with sensationalism.
Years before her innings in SEBI
The funds in Bermuda and Mauritius where the Buch couple invested took place in 2015 – two years before she got a seat on the SEBI board and 7 years before she became its chairperson. Moreover, the investments were not routed through any other name, as is often the practice in shady deals.
The right of private citizens
As for the other major allegation that the couple invested in a fund with a multi-layered offshore structure, both Madhabi and her husband Dhaval used to live in Singapore when they were made which entitled them to financial decisions as private citizens. The SEBI chief has said that she has made all the disclosures to SEBI over the years and can do so again if any authority asks for them.
Dhaval as Blackstone advisor
Hindenburg has also alleged conflict of interest when Madhabi’s husband Dhaval was appointed as advisor to private equity fund Blackstone. The point here is he was an expert in the domain who worked with Unilever. The SEBI chief also used to endorse and back ReITs (real estate investment trusts) – another butt of Hindenburg’s criticism – as an established financial instrument in mature markets including Hindenburg’s home turf – the US.
Caeser himself
Madhabi Puri Buch is not Caeser’s wife here, but Caeser himself. She has vouched that her “life and finances are an open book”. If she can lay them bare as she has claimed, it would only add more confidence to the millions of investors who put a lot of trust in her words and conduct and entrust their savings with the Indian securities markets.
The Hindenburg report of August 10 contained three central points about the timing and nature of investments of Madhabi Puri Buch and her husband Dhaval. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
