Hindenburg alleges India market regulator chief held stake in offshore funds used by Adani Group

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MUMBAI: U.S. based short-seller Hindenburg Research alleged on Saturday that the head of India’s market regulator, Madhabi Puri Buch, previously held ...

The logo of the Adani Group is seen on the facade of its Corporate House on the outskirts of Ahmedabad - REUTERSpix: U.S. based short-seller Hindenburg Research alleged on Saturday that the head of India’s market regulator, Madhabi Puri Buch, previously held investments in offshore funds also used by the Adani Group.

Citing whistleblower documents, Hindenburg said that Buch and her husband held stakes in an offshore fund where a substantial amount of money was invested by associates of Vinod Adani, brother of Adani Group Chairman Gautam Adani. “Adani Group has absolutely no commercial relationship with the individuals or matters mentioned in this calculated deliberate effort to malign our standing,“ the spokesperson said.

Alongside the inquiry into Adani Group, SEBI sent a “show cause” notice to Hindenburg, alleging the short-seller violated India’s rules by setting up a short-bet using non-public information.In its new report, Hindenburg attempts to link offshore funds that traded in Adani Group shares with personal investments of Buch and her husband.

In 2017, before Buch was appointed as a full-time SEBI member, her husband requested to be sole operator of the account, Hindenburg said, citing whistleblower documents. The sub-fund in which Buch and her husband invested, IPE-Plus Fund 1, said on Sunday that it had not invested in any shares of the Adani Group directly or indirectly.

 

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