Hindenburg Research Makes New Allegations Against Adani Group: SEBI Under Scrutiny

Hindenburg Research made new allegations, claiming that SEBI Chairperson

In a recent statement, Hindenburg Research has raised fresh concerns about the Adani Group’s business dealings. The short-selling firm has alleged that the chairperson of India’s market regulator, SEBI, has hidden connections to offshore funds linked to Vinod Adani, the brother of Adani Group’s founder.
Prior Allegations and Market Impact

This is not the first time Hindenburg Research has raised concerns about the Adani Group. In January this year, the firm published a detailed report titled “Adani Group: How the World’s 3rd Richest Man is Pulling the Largest Con in Corporate History”. The report alleged corporate governance lapses and accounting irregularities within the Adani Group, including:

– Inconsistent financial disclosures
– Use of offshore shell entities
– High debt levels

The report sparked a market frenzy, with Adani Group’s stocks plummeting and wiping out over $100 billion in market value.

New Allegations and SEBI’s Inaction

Hindenburg Research has now made new allegations, claiming that SEBI Chairperson Madhabi Puri Buch and her husband have undisclosed stakes in offshore funds used by Vinod Adani. The firm has questioned SEBI’s inaction despite evidence and multiple independent media investigations, suggesting that the regulator may be influenced by the undisclosed connections.

SEBI’s Role Under Scrutiny

The Securities and Exchange Board of India (SEBI) is responsible for regulating and overseeing the country’s securities market. However, Hindenburg Research’s allegations have raised concerns about SEBI’s independence and ability to effectively regulate the market.

The Adani Group has not yet responded to these latest allegations, but has previously denied all allegations made by Hindenburg Research, calling them “baseless” and “malicious”.

Industry Implications and Next Steps

This development has sparked debate about the independence of India’s market regulator and its ability to effectively oversee the country’s corporate sector. As the situation unfolds, investors and stakeholders will be watching closely for any further developments.