Equity markets and specifically Adani group stocks opened in the red following a fresh report by Hindenburg Research alleging conflict of interest on the part of SEBI chairperson Madhabi Puri Buch. At 10.20 am Sensex was down 188 points (0.24%). Adani Enterprises, Adani Ports, Adani Power, and other group shares lost as much as 5-6 per cent from the previous close during the morning session.

While Buch and SEBI dismissed the allegations by Hindenburg Research, the hedge fund issued a fresh statement asking Buch to disclose details of all the clients that were serviced by the offshore funds owned by her husband.

“SEBI Chairperson Madhabi Buch’s response to our report includes several important admissions and raises numerous new critical questions,” the firm said in a statement on X.

Pushing back against the Buchs’ claims of no wrongdoing, Hindenburg alleged that their response to its report essentially confirms that they invested in an obscure Bermuda/ Mauritius fund structure alongside money allegedly siphoned by Vinod Adani, the brother of Gautam Adani.

“Buch’s statement promised a ‘commitment to complete transparency’. Given this, will she publicly release the full list of consulting clients and details of the engagements, both through the offshore Singaporean consulting firm, the Indian consulting firm and any other entity she or her husband may have an interest in? Finally, will the SEBI Chairperson commit to a full, transparent and public investigation into these issues?” Hindenburg asked.

Meanwhile, more support came in for Buch. The Indian Venture and Alternate Capital Association (IVCA) issued a statement that said, “We believe that the recent allegations made by Hindenburg are unwarranted and do not reflect a deep understanding of the Indian regulatory environment. Ms Buch has issued a statement to the allegations which amply explain the mismatch in timelines, adequate disclosures made and the misinterpretations on account of the research firm.”

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