Mint Quick Edit | Adani-Hindenburg-Sebi: Wheels within wheels

Hindenburg Research, in fresh allegations, this time related to the Securities and Exchange Board of India’s (Sebi) probe of the Adani case, has pointed a clash-of-interests finger at Madhabi Puri Buch, the market regulator’s chief. 

Citing whistleblower documents, the short-seller under Sebi’s scanner has alleged that Buch and her husband had stakes in an offshore entity that was used to manipulate Adani group shares. 

It has also put out emails that suggest so. Buch and her husband have dismissed it as “character assassination” and issued a point-by-point rebuttal to defend the investments. 

Also read: What is short-selling? How Hindenburg used it last year to make $4 million from the Adani Group’s short-sell?

In early 2024, India’s Supreme Court expressed confidence in Sebi’s Adani investigation while rejecting a plea to order the probe’s transfer to another agency. Even without proof of wrongdoing, the latest charges that Hindenburg has levelled have altered perceptions of the investigative context. 

With allegations and counters now being hurled, it’s in the public interest for this case to be taken over by sleuths other than Sebi’s, even if they’re relatively short of the expertise needed to trace financial trails. India’s broad goal is to have the truth prevail and keep capital markets scandal-free.