Hindenburg report: Doubts on SEBI probe, Cong calls for CBI, BJP links Soros

After the Union government’s downplayed response to the Hindenburg Research report that docked the SEBI chief and Adani for their alleged potential conflicts of interest, the Opposition, led by the Congress, demanded a CBI investigation into the matter that involves SEBI Chief Madhabi Puri Buch, her husband, and the Adani Group.

Hindenburg Research, which previously accused the Adani Group of stock manipulation and accounting fraud in early 2023, has now claimed that Buch and her husband, Dhaval Buch, had financial interests in offshore funds linked to the Adani Group. These funds are reportedly based in Bermuda and Mauritius and were allegedly used to siphon funds related to the Adani Group's operations.

According to Hindenburg, the Buchs held stakes in a complex offshore fund structure that also had connections to individuals involved in the Adani Group's alleged financial misconduct. This revelation has raised concerns about possible conflicts of interest within SEBI, which has been investigating the Adani Group since the initial allegations surfaced.

The Congress party, expressing concerns over the integrity of SEBI's investigation, has argued that the investigation should be transferred to an independent agency. They have criticized SEBI for its handling of the case and questioned whether the prolonged investigation has inadvertently benefited the Adani Group and the Indian Prime Minister while damaging SEBI’s reputation.

In response to the new allegations, SEBI issued a statement detailing the progress of its investigations into the Adani Group. The regulator claimed to have completed 23 out of 24 investigations, issued numerous summons and letters, and reviewed thousands of documents. SEBI also noted that the investigations were initiated following the initial set of allegations from Hindenburg Research in early 2023.

Despite this, Congress has accused SEBI of attempting to create an impression of thoroughness while allegedly delaying critical aspects of the investigation. They have questioned the regulator's effectiveness and integrity, given the new allegations against its chairperson.

The BJP, in turn, has defended SEBI and criticized the Congress for allegedly attempting to undermine India's economic stability. The party has accused the Congress of spreading misinformation and attempting to create economic chaos by aligning with alleged external critics, including Hungarian-American philanthropist George Soros, who they claim has invested in Hindenburg Research.

The BJP’s response highlights its concern that the allegations against SEBI's chairperson are part of a broader conspiracy to destabilize India's financial markets. They argue that the current allegations are unfounded and that India's economic growth remains strong, as acknowledged by international bodies like the World Bank.

In reaction to the allegations, SEBI Chairperson Madhabi Buch and her husband have acknowledged their investments in the offshore funds but have insisted that these were made before Buch's appointment to SEBI and were managed by a family friend. Buch has also stated that she recused herself from any matters involving potential conflicts of interest.

However, critics, including former SEBI officials and journalists, have raised concerns about the appropriateness of SEBI's defence of Buch's financial dealings. They argue that the issue of whether Buch fully disclosed her financial interests and recused herself from relevant investigations remains crucial.

The Congress party's demands for a CBI investigation or an SIT probe reflect growing concerns about the potential for conflicts of interest and the need for transparency in high-profile financial investigations. The opposition has called for a thorough and transparent investigation into the allegations, emphasizing the need for accountability and public trust in financial regulatory institutions.