Shares of the Adani Group experienced a significant decline on Monday, August 12, following the release of a new report by Hindenburg Research. The report alleged that Madhabi Puri Buch, the Chairperson of the Securities and Exchange Board of India (SEBI), had a stake in offshore entities that were allegedly used in an Adani money siphoning scandal. Adani Energy Solutions opened 17% lower on the Bombay Stock Exchange (BSE), while other Adani Group companies like Adani Power, Adani Green Energy, and Adani Total Gas saw declines of 4.98%, 6.96%, and 5.57% respectively. Adani Wilmar also experienced a 2.3% drop in its share value. Ambuja Cements, another company owned by the Adani Group, saw a decline of up to 0.6%.
The Hindenburg report, published on Saturday, August 10, accused Buch and her husband, Dhaval Buch, of holding stakes in these obscure offshore entities. However, the Adani Group vehemently denied the allegations, labeling them as “malicious, mischievous and manipulative.” In an official statement, the company asserted that they have no commercial relationship with the individuals or matters mentioned in the report. They further emphasized their commitment to transparency and compliance with all legal and regulatory requirements.
In response to the allegations, SEBI Chief Madhabi Puri Buch and her husband issued a joint statement. They claimed that the investment in the fund referenced in the Hindenburg report was made in 2015, a period when they were both private citizens residing in Singapore. This was nearly two years before Buch joined SEBI. The statement further highlighted SEBI’s strong institutional mechanisms for disclosure and recusal, emphasizing that all disclosures and recusals have been diligently followed, including those related to securities held or subsequently transferred. Buch joined SEBI as a whole-time member in 2017 and later assumed the role of Chairperson in 2022.
The latest allegations from Hindenburg have ignited a political firestorm between the opposition and the ruling National Democratic Alliance (NDA). The opposition has demanded a thorough investigation into the alleged irregularities, further intensifying the controversy surrounding the Adani Group and its business practices.
