US-based Hindenburg Research has accused SEBI chairperson Madhabi Puri Buch of having ties with the Adani Group, potentially compromising the regulator’s investigation into allegations of manipulation and fraud against the conglomerate. Both Buch and her husband have denied these claims.
SEBI is responsible for safeguarding investor interests, developing and regulating the securities market, and enforcing rules under various acts. The regulator is currently investigating Hindenburg’s accusations against the Adani Group, including share price manipulation and accounting fraud. SEBI has also sent show-cause notices to Adani’s flagship companies and is probing 13 opaque offshore entities holding significant stakes in Adani’s publicly traded stocks.
However, SEBI has also turned the tables on Hindenburg, issuing a show-cause notice accusing the firm of making “unfair” profits through “collusion” and using “non-public” and “misleading” information to trigger “panic selling” in Adani Group stocks. The regulator alleges that Hindenburg shared an advance copy of its report with a New York-based hedge fund manager, profiting from subsequent share price fluctuations. The investigation and allegations have sparked a high-stakes probe, with SEBI’s credibility and independence under scrutiny.
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