New Delhi: Targeting Hindenburg Research over its fresh allegations, BJP Rajya Sabha MP and senior Advocate Mahesh Jethmalani said that the US short seller had chosen to attack the SEBI Chairperson Madhabi Buch instead of responding to a notice from the market regulator.
“Hindenburg’s “Something big” is a pathetic damp squib. The announcement prior to its alleged big revelation itself reveals its motive: to destabilise India’s stock markets. The pre publicity ill behoves a reputed “research analyst “. As regards the “big” something there is nothing new against the Adani group,” his post on X read.
The target is now the regulator- SEBI -Chairperson Madhabi Puri Buch. SEBI had issued a notice to Hindenburg seeking information regarding the circumstances of the Adani short sale as it was entitled to. Instead of responding to the show cause notice, Hindenburg has chosen to attack its chairperson on the ground of conflict of interest (more on the grounds on which the attack is based after Ms Buch issues a detailed statement as announced; suffice it to say that the grounds are prima facie rubbish),” Jethmalani said.
The senior advocate also urged the government to turn serious attention to those who were looking to devastate the economy.
“The picture thus is one of a US-based profiteer who made millions of dollars at the cost of Indian retail investors now hedging questions legitimately asked by the Indian regulator and brazenly defaming the latter without answering its questions. This reeks of colonial arrogance of days bygone and contempt by a rich country national fortified by safe harbour, of the economic sovereignty of an Emerging nation. And as is to be expected a host of left-leaning media outlets – slaves to foreign masters all and wannabe rulers with their help- have called for Ms Buch’s head. It is time, the govt of the day turned its serious attention to these anti nationals who have no other agenda but to disrupt India’s social fabric, distort its polity and now devastate its economy,” Mahesh Jethmalani said in his post on X.
Shortly after US-based short seller Hindenburg Research on August 10 alleged that SEBI Chairperson Madhabi Buch and her husband had stakes in “both the obscure offshore entities used in the Adani money siphoning scandal,” the SEBI Chairperson and her husband issued a joint statement rejecting the allegations.
Madhabi Puri Buch and her husband accused Hindenburg Research, against whom SEBI has taken enforcement action, of character assassination.
In the joint statement released to the media they said, “In the context of allegations made in the Hindenburg Report dated August 10, 2024, against us, we would like to state that we strongly deny the baseless allegations and insinuations made in the report. The same are devoid of any truth. Our life and finances are an open book. All disclosures as required have already been furnished to SEBI over the years. We have no hesitation in disclosing any and all financial documents, including those that relate to the period when we were strictly private citizens, to any and every authority that may seek them. Further, in the interest of complete transparency, we would be issuing a detailed statement in due course.”
“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,” the statement from Madhabi Buch and her husband Dhaval Buch read.
A detailed statement from Madhabi Buch and her husband is also expected later in the day.
Earlier on Saturday, US short seller Hindenburg had alleged, “We had previously noted Adani’s total confidence in continuing to operate without the risk of serious regulatory intervention, suggesting that this may be explained through Adani’s relationship with SEBI Chairperson, Madhabi Buch.”
“What we hadn’t realized: the current SEBI Chairperson and her husband, Dhaval Buch, had hidden stakes in the exact same obscure offshore Bermuda and Mauritius funds, found in the same complex nested structure, used by Vinod Adani,” the report by the US hedge firm said.
Hindenburg Research said it has made the new allegations based on documents provided by a whistleblower and investigations carried out by other entities.
“Madhabi Buch and her husband Dhaval Buch first appear to have opened their account with IPE Plus Fund 1 on June 5, 2015, in Singapore, per whistleblower documents. A declaration of funds, signed by a principal at IIFL states that the source of the investment is “salary” and the couple’s net worth is estimated at USD 10 million,” the report stated.
In January 2023, Hindenburg published a report accusing the Adani Group of financial irregularities, leading to a significant drop in the company’s stock price. The group at the time had rubbished these claims.
The Hindenburg report alleged stock manipulation and fraud by the conglomerate. The case is related to the allegations (part of a report by Hindenburg Research) that Adani had inflated its share prices. After these allegations were published, there was a sharp fall in the shares of various Adani group companies’ stocks, reportedly to the tune of over USD 100 billion.
The US short seller’s report in January was published two days before a USD 2.5 billion follow-up public offering was issued by Adani Enterprises. The Adani group has repeatedly denied all the accusations in the Hindenburg Research report.