Investors are advised to stay calm amidst the Hindenburg controversy involving Securities and Exchange Board of India (SEBI) Chairperson Madhabi Puri Buch and the Adani Group. 

Market regulator SEBI is working to reassure investors following Hindenburg Research’s report. The report alleged conflicts of interest and biased treatment by Sebi Chairperson Madhabi Puri Buch towards the Adani Group. 

Hindenburg’s latest report claimed a conflict of interest involving Sebi Chairperson Madhabi Puri Buch and her husband due to their investments in entities associated with the Adani Group.

The report also questioned Sebi’s handling of the Adani Group investigations and its modifications to the SEBI (REIT) Regulations 2014. In response, SEBI emphasised autonomy and transparency and affirmed thorough investigations into the Adani Group. 

Sebi urged investors to remain composed and conduct thorough research before reacting to such reports. Despite SEBI’s efforts, the market remains cautious due to concerns about the regulatory climate and its impact on investor confidence.

The controversy initially centred on allegations of stock manipulation against the Adani Group by Hindenburg Research, a US-based activist investor firm. The whistleblower also dragged Kotak Mahindra Bank into the controversy, questioning the effectiveness of the market regulator, SEBI. 

The allegations include claims of undisclosed investments in offshore funds linked to the Adani Group by SEBI Chairperson Madhabi Puri Buch and her husband. SEBI has refuted these allegations, asserting its independence and transparency in investigations. 

Additionally, Sebi issued show cause notices to Hindenburg Research, accusing them of misleading disclosures and violating regulations.

The Buch family dismissed the accusations as baseless, while the Adani Group denied any commercial relationship with the Buch family. The Adani Group also questions Hindenburg’s credibility, calling them a “discredited short-seller.”

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