How Hindenburg works? RPG Group boss Harsh Goenka's funny take

US short-seller Hindenburg dropped a bomb last week accusing the chairperson of Secutiries and Exchange Bureau of India (Sebi) Madhabi Puri Buch and her husband of investing in offshore funds which was used by two Adani associates to round-trip funds and inflate stock prices.

Amid the row, industrialist Harsh Goenka has a funny take on this. He shared a funny video showing how a man pretends to spike one's drink to manipulate the other person. Goenka wrote, "Understand in a simple way how Hindenburg works."



Hindenburg has accused the Buchs of opening an account in 2015 with a wealth management firm in Singapore to invest undisclosed sums of money in a Mauritius-registered fund run by an Adani director. This fund's ultimate parent was alleged to be used by two Adani associates to inflate stock prices. Hindenburg further claims Madhabi Buch, during her tenure as a whole-time member of Sebi, held a 100 percent interest in a Singaporean consulting firm, transferring shares to her husband just after her appointment as Sebi chairperson in 2022.

The Buchs have strongly refuted the "baseless allegations and insinuations made in the report," calling the charges "devoid of any truth."

Sebi defended its chairperson, stating Buch made relevant disclosures consistently and "had also recused herself in matters involving potential conflicts of interest."


Adani Group denied any commercial dealings with Buch, and wealth management entity 360ONE, previously known as IIFL Wealth Management, stated Buchs' investment in IPE-Plus Fund 1 was less than 1.5 percent of the total inflows, adding it had no investments in Adani shares.

The accusations have prompted opposition parties, led by Congress, to demand a probe by a joint parliamentary committee, while the BJP suggested the report was backed by anti-Modi billionaire investor George Soros to undermine the Indian economy.

Some observers view the Hindenburg attack on Buch as a reaction to the June 27 show-cause notice Sebi sent to the US firm and its associates, including Nathan Anderson and Mark Kingdon, for allegedly violating Indian laws while profiting from the fall in Adani shares.