Hindenburg: Sebi chief Madhabi Puri Buch and her husband Dhaval Buch had stake in Adani-linked entities

Mumbai: US-based shortseller Hindenburg Research alleged late on Saturday that Madhabi Puri Buch, chairperson of India's markets regulator, the Securities and Exchange Board of India (Sebi), and her husband, Dhaval Buch, had investments in obscure offshore entities part of foreign money flows linked to Adani group that is the subject of a Sebi investigation.

In a report released on Saturday, citing whistleblower documents, Hindenburg claimed the couple had investments in IPE Plus Fund, a small offshore fund based in Mauritius, set up by a fund manager who also served as a director on the board of Adani Enterprises.

The report further said Vinod Adani, brother of Gautam Adani, used this structure to invest in Indian markets, with funds allegedly siphoned from over-invoicing of power equipment to the Adani group, an allegation that was part of the original Hindenburg report released last year.


Shares of Adani companies crashed after Hindenburg issued a report on January 25, 2023, alleging accounting fraud and stock price manipulation within the group. Adani group had denied all allegations when the report first came out. The stocks have recouped their losses since then.

ET has not independently verified these allegations.

Sebi and Adani didn't immediately respond to ET's queries.

According to the whistleblower documents cited by Hindenburg, a declaration of funds signed by a principal at IIFL states that the source of the investment is "salary," and the couple's net worth is estimated at $10 million.

Based on this, it questioned Sebi's status as an "objective arbiter in the Adani matter" in a report, citing whistleblower documents. Hindenburg had teased the report earlier in the day.

"We suspect Sebi's unwillingness to take meaningful action against suspect offshore shareholders in the Adani group may stem from chairperson Madhabi Buch's complicity in using the same funds used by Vinod Adani, brother of Gautam Adani," the report alleged.