Hindenburg Report: Adani Group Shares Plunge 7%, Stock Market Declines

Adani Group stocks dropped by up to 7% following claims by US short-seller Hindenburg that SEBI chief Madhabi Puri Buch and her husband, Dhaval Buch, had interests in offshore funds based in Bermuda and Mauritius. The report alleged that these funds were utilized by Gautam Adani’s brother, Vinod Adani, to acquire and trade substantial shares in the Adani Group.

What did the Sebi chief say about Hindenburg’s allegations?

The SEBI chief explained that the investment in the fund cited by Hindenburg was made in 2015, while she and her husband were private citizens in Singapore, nearly two years before she joined SEBI as a full-time member. She noted, “The investment decision was influenced by Chief Investment Officer Anil Ahuja, who is a childhood friend of Dhaval’s from school and IIT Delhi. Ahuja’s extensive background with Citibank, JP Morgan, and 3i Group plc contributed to the decision.”

She also addressed the matter of the two consulting firms that became dormant, stating that this was “explicitly disclosed to SEBI.” After her husband left Hindustan Unilever in 2019, he established his own practice through these firms. She added, “The transfer of shareholding in the Singaporean entity to Dhaval was disclosed not only to SEBI but also to Singaporean and Indian tax authorities.”

Hindenburg says Sebi’s statement ‘confirms’ the short-seller’s report.

According to Hindenburg, the Sebi chief’s statement “publicly confirms” that she invested alongside money that Vinod Adani allegedly misappropriated in the Bermuda/Mauritius fund arrangement. Hindenburg stated that she acknowledged in her response that the fund was managed by her husband’s childhood pal, who was also an Adani director at the time.