Hindenburg Research’s recent allegations against SEBI Chairperson Madhabi Puri Buch have sparked significant debate. While many experts dismiss the claims as baseless and sensationalist, with notable figures like former Infosys CFO Mohandas Pai and Deepak Shenoy criticizing the report’s lack of substance, the Opposition has seized the opportunity to demand a Joint Parliamentary Committee (JPC) inquiry.
Former Infosys CFO Mohandas Pai was among the first to respond to Hindenburg’s report. He labeled the allegations as “character assassination by a vulture fund,” criticizing the report for being sensationalist. Pai took to X (formerly Twitter) to denounce the claims, asserting that the report aimed only to create a scandal rather than present factual information. He also defended SEBI’s regulatory processes, highlighting that regulations are developed through open consultations and reflect a collective effort of market participants and regulators based on global standards.
— TVMohandasPai (@TVMohandasPai)
Deepak Shenoy, CEO of Capitalmind, expressed skepticism about Hindenburg’s latest report. Commenting on a post on X, Shenoy remarked, “Thoda zyada ho gaya, I feel, basically they have gone into sensationalism. There is hardly any substance.”
Tax lawyer Ajay Rotti also questioned the report’s credibility, describing its connections as “ridiculous” and suggesting that the Hindenburg report aims to destabilize Indian markets. Rotti stated, “The Hindenburg report is clearly an attempt to get the Indian markets to tank at any cost. What exactly does a short seller gain from this?”
Meanwhile, Congress President and Leader of the Opposition in the Rajya Sabha, Mallikarjun Kharge, has emphasized the need for a JPC inquiry. He argued that small and medium investors, who trust SEBI with their hard-earned money, need protection. “A JPC inquiry is crucial to investigate this major scandal,” Kharge wrote on X.
Also, In a statement, Congress general secretary Jairam Ramesh said that SEBI’s “strange reluctance” to investigate the “Adani MegaScam” has been noted for a long time.
Congress General Secretary Jairam Ramesh has used the controversy to call for immediate government action. Ramesh urged the government to address potential conflicts of interest in the SEBI investigation of the Adani Group. He advocated for the establishment of a Joint Parliamentary Committee (JPC) to thoroughly investigate the Adani MegaScam, stressing the need for transparency and accountability in the face of these allegations.
Trinamool Congress MP Mahua Moitra accused SEBI of conflict and capture, criticizing Buch for being an opaque investor in the Adani Group. Moitra questioned how Buch could lead an investigation into funds she is personally involved with, calling it a “mockery of justice.”
Another Trinamool Congress MP, Sagarika Ghose, added, “Hindenburg revelations. The SEBI chief must quit pending investigation.”
Earlier on Saturday night, Hindenburg published a report on its website claiming that the Buchs had stakes in Bermuda and Mauritius-based offshore funds used by Gautam Adani’s brother Vinod Adani “to amass and trade large positions in shares of the Adani Group”.
The Hindenburg report, citing whistleblower documents, claimed that the Buchs appeared to have opened their account with IPE Plus Fund 1 on June 5th, 2015 in Singapore. The offshore Mauritius fund is said to have been set by an Adani director through IIFL and is registered in tax haven Mauritius.
Dismissing the allegations made by Hindenburg Research as “baseless ”, Sebi chief Madhabi Puri Buch and her husband Dhaval Buch today said the US-based short-seller is resorting to character assassination in response to a show-cause notice issued by the regulator in the Adani controversy.
“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. Our life and finances are an open book,” the Buchs said in the statement.
