Hindenburg Research has alleged that it suspects Sebi’s unwillingness to act against Adani Group may be because Madhabi Puri had stakes in offshore funds linked to the conglomerate
NEW DELHI – The AAP on Sunday demanded that the Supreme Court take note of the allegations levelled by US short seller Hindenburg against SEBI chief Madhabi Puri Buch.
Hindenburg Research has alleged that it suspects SEBI’s unwillingness to act against Adani Group may be because Madhabi Puri had stakes in offshore funds linked to the conglomerate – an allegation that the SEBI head called “baseless” and an attempt of “character assassination”.
Addressing a press conference here, AAP Rajya Sabha MP Sanjay Singh said the SEBI had told a Supreme Court panel that the investigation into the Adani group was “directionless”.
“SEBI chief and her husband’s money was invested in shell companies. Why were these facts hidden from the Supreme Court? The apex Court should take note of the new developments and how facts were hidden,” he said.
The Securities and Exchange Board of India (SEBI) in October 2020 began a probe into the shareholding structure of Adani Group companies after red flags were raised over high concentration of foreign holdings in the conglomerate’s listed companies. Investigation was launched to determine if the foreign investors are genuine public shareholders or acting as fronts for the promoters.
The SEBI last year had told a Supreme Court-appointed panel that it was investigating 13 opaque offshore entities that held between 14 per cent and 20 per cent across five publicly traded stocks of the conglomerate. It hasn’t stated if the two incomplete probes have since been completed, something which Hindenburg used to attack the market regulator.
Madhabi and her husband Dhaval Buch in a joint statement strongly denied the “baseless allegations and insinuations made in the report”.
The same, they said, “are devoid of any truth”.
“Our life and finances are an open book,” they said. “It is unfortunate that Hindenburg Research against whom SEBI has taken an enforcement action and issued a show cause notice has chosen to attempt character assassination in response to the same.”
