SEBI Chairperson Under Scrutiny: Hindenburg Research Raises Questions Over Madhabi Buch’s Role in Adani Probe

Hindenburg Research has once again stirred controversy by placing India's market regulator, SEBI, and its chairperson, Madhabi Buch, under intense scrutiny. The U.S.-based short seller has alleged that SEBI's reluctance to take decisive action against questionable offshore shareholders in the Adani Group may be linked to Buch's involvement with the same funds reportedly used by Vinod Ambani, Gautam Adani's brother.

In a damning report released late Saturday, Hindenburg suggested that SEBI's inability to identify the true funders behind Adani’s offshore shareholders could be due to Buch’s own financial connections. The report asserts that Buch and her husband had stakes in a complex offshore fund structure, including the Bermuda-based Global Opportunities Fund (GDOF) and a Mauritius-registered entity, IPE Plus Fund 1. These funds are alleged to have been used by Vinod Ambani to funnel money into Indian markets through the Adani Group.

Hindenburg's report further highlights that SEBI informed the Supreme Court last August that its investigation into the Adani Group's offshore shareholders had "drawn a blank," raising questions about the regulator's efficacy and potential conflicts of interest.

Adding fuel to the fire, Hindenburg pointed out Buch's previous involvement with Agora Partners, a Singaporean consulting firm, which she transferred to her husband only after becoming SEBI chairperson. Additionally, Buch's husband, Dhaval, was appointed as a senior adviser to Blackstone in 2019 during Buch’s tenure as a whole-time member of SEBI. Blackstone has been a significant player in India's nascent REIT (Real Estate Investment Trust) market, a sector where SEBI has proposed and implemented key regulatory changes.

These revelations have sparked a fresh wave of criticism and raised concerns about potential conflicts of interest within SEBI's leadership, especially in its handling of the high-profile Adani case.