The Hindenburg Report has once more leveled accusations against companies affiliated with the Adani Group. It claims that despite releasing their report 18 months ago, the Securities and Exchange Board of India (SEBI) has not taken any action against Adani. Hindenburg attributes this inaction to SEBI Chairman Madhavi Puri Buch’s alleged shares in Adani-linked Mauritius companies. The report alleges that both Madhavi Puri Buch and her husband hold stakes in these Mauritius-based funds.
This renewed scrutiny has stirred controversy in India, reminiscent of the turmoil caused when the previous Hindenburg Report led to a dramatic fall in the Indian stock market and Adani Group shares. Experts suggest that the new report may further impact the Indian stock market, with indications that Monday’s market could experience declines.
Last year, the Hindenburg Report, authored by the American short-seller, sent shockwaves through India’s business sector. The controversy surrounding it persists, with Hindenburg asserting that its earlier report contained no errors and was based on factual information. However, the Supreme Court of India dismissed these allegations. The Adani Group labeled Hindenburg’s claims as minor and contended that SEBI’s investigations found no substantial evidence against them.
Hindenburg contends that there are other underlying issues, alleging that Mauritius funds used to artificially inflate Adani Group shares involve stakes held by Madhavi Puri and her husband Dhaval Buch. The report states that it received this information from a whistleblower.
Gautam Adani’s brother, Vinod Adani, is said to control several offshore funds in Bermuda and Mauritius, where Madhavi Puri and Dhaval Buch are reportedly shareholders. The Hindenburg Report, unveiled in January of last year, prompted SEBI to initiate an investigation. The same organization is now being targeted by the report, though SEBI has yet to respond to these latest allegations.