From Yahoo Finance UK’s Pedro Goncalves:
Stocks in Adani Enterprises slumped by over 7% after the US short-seller Hindenburg Research alleged that the Securities and Exchange Board of India (SEBI) chairperson Madhabi Puri Buch and her husband had undisclosed investments in an offshore fund structure used by Vinod Adani, brother of Adani Group founder Gautam Adani.
The report suggests that SEBI’s lack of action against the Adani Group, despite evidence of fraudulent practices, could be due to Buch’s involvement in these funds.
“Madhabi Buch and her husband had stakes in a multi-layered offshore fund structure with minuscule assets, traversing known high-risk jurisdictions, overseen by a company with reported ties to the Wirecard scandal, in the same entity run by an Adani director and significantly used by Vinod Adani in the alleged Adani cash siphoning scandal,” the report added, according to local media.
Hindenburg Research has called for further investigation into these allegations. The firm has pledged to donate any proceeds derived from the report to causes that support free expression.
SEBI has yet to make public findings from several long-running probes into the Adani Group after India’s Supreme Court in January ordered it to wind up the investigations within three months.
Buch and her husband issued a statement calling Hindenburg’s report as an attack on the credibility of SEBI and attempted “character assassination”.
Adani Energy Solutions (ADANIENSOL.NS) plunged as much as 17% before paring the bulk of the loss, with all but one of the conglomerate’s 10 stocks trading lower.
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