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U.S. short-seller Hindenburg Research claimed that India’s market regulator head, Madhabi Puri Buch, invested in Adani Group-used offshore funds.
Buch rejected the report’s charges in a late-night press statement, promising a more thorough explanation.
Buch stated in a Sunday statement that she followed all disclosure requirements and made private investments in the fund mentioned in the Hindenburg report in 2015, two years before joining SEBI.
Indian opposition parties urged a parliamentary investigation after Hindenburg’s report.
Hindenburg said Buch and her husband possessed holdings in an offshore fund where partners of Vinod Adani, brother of Gautam Adani, put a lot of money, citing whistleblower documents.
On Sunday, Adani Group denied the charges and said its offshore holding structure was transparent.

Conglomerate spokesperson: Hindenburg claims “no more than red herrings thrown by a desperate entity with total contempt for Indian laws.”.
“Adani Group has absolutely no commercial relationship with the individuals or matters mentioned in this calculated, deliberate effort to malign our standing,” the rep stated.
Despite Adani Group’s protestations, Hindenburg’s January 2023 report alleging tax haven abuse and market manipulation sparked a $150 billion sell-off in its shares. The stock has partially recovered.

The Securities and Exchange Board of India (SEBI) is investigating the 2023 report. SEBI informed six Adani Group entities of stock market regulation violations in May.
SEBI issued Hindenburg a “show cause” notice for utilizing non-public information to make up a short-bet, along with the Adani Group inquiry.

July Hindenburg declared those charges “nonsense.”.
Hindenburg links Buch and her husband’s personal investments in Adani Group shares to offshore funds in its new research.
The Financial Times reported that the Bermuda-based Global Opportunities Fund, used by Adani Group entities to trade group company shares, had sub-funds.
Hindenburg claims whistleblower records show Buch and her husband invested in a sub-fund in 2015.
Hindenburg cited whistleblower documents to show that Buch’s husband demanded single account operatorship in 2017, before Buch became a full-time SEBI member.
The whistleblower docs showed Buch’s 2018 email requesting her husband’s whole fund investment.
She became regulatory body chief in 2022.
“Our findings suggest further research. Greater transparency is welcome “Hindenburg said.
Buch and her husband said they were transparent about their finances and would give any authorities financial documentation. “All disclosures as required have already been furnished to SEBI over the years,” stated.
Buch and her husband invested in IPE-Plus Fund 1, which declared on Sunday it had not invested in Adani Group shares.
“No investor participated in fund operations or investment decisions. The fund’s asset manager told India’s stock exchanges that Mrs. Madhabi Buch and Mr. Dhaval Buch’s holdings were less than 1.5% of the entire intake.
The 10-company Adani group, which operates airports, ports, energy, gas, and other industries, has profited from Prime Minister Narendra Modi’s infrastructure development effort.
Both the Bharatiya Janata Party and the Adani company have refuted the Congress party’s claims of tight links.
On Saturday night, a Congress spokesperson urged on the government to “eliminate all conflicts of interest in the SEBI investigation of Adani” on social networking platform X.
Party sought a parliamentary probe to “investigate the full scope” of the matter.