• Source:JND
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The Hindenburg Research said Sebi chief Madhabi Buch's response to its allegations has raised several critical questions. The American short-seller has alleged a “massive conflict of interest” on the part of the Sebi chief after it claimed the latter did not probe its erstwhile allegations against the Adani group as Buch had stakes in the conglomerate's offshore funds.

In a series of posts on X, Hindenburg Research said Buch made several important admissions. The US-based firm asked her if her husband’s clients include the ones Sebi is tasked with regulating, as she said in her reply that her husband used the consulting entities starting in 2019 to transact with unnamed “prominent clients in the Indian industry”.

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"SEBI Chairperson Madhabi Buch’s response to our report includes several important admissions and raises numerous new critical questions. Buch’s response now publicly confirms her investment in an obscure Bermuda/Mauritius fund structure, alongside money allegedly siphoned by Vinod Adani. She also confirmed the fund was run by a childhood friend of her husband, who at the time was an Adani director," it said.

"SEBI was tasked with investigating investment funds relating to the Adani matter, which would include funds Ms. Buch WAS PERSONALLY INVESTED IN and funds by the same sponsor which were specifically highlighted in our original report. This is obviously a massive conflict of interest," it added.

Hindenburg also claimed that, just weeks before her appointment as Sebi chief, she arranged for all accounts connected to Adani to be registered exclusively under Dhavan Buch's name. "Despite disclaiming control, a private email she sent a year into her SEBI term shows she redeemed stakes in the funds through her husband’s name, per the whistleblower documents," it added.

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Earlier, reacting to the report, Buch asserted that the claims made against them were false and that their finances were completely transparent. "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," they said, as per PTI.