Government Stays Silent After Sebi Chief Denies Hindenburg Allegations—Here’s What Happened

The Indian government has decided not to add anything further after the capital markets regulator, Sebi, and its chief, Madhabi Puri Buch, responded to allegations made by Hindenburg Research. The US-based firm accused Buch and her husband, Dhaval Buch, of having a conflict of interest in the ongoing investigation into the Adani Group.

Ajay Seth, the Economic Affairs Secretary, stated that Sebi and its chairperson have already made comprehensive statements, leaving no need for further government input.

Hindenburg Research claimed that the Buchs had invested in an offshore fund connected to Vinod Adani, the brother of billionaire Gautam Adani. The Buchs clarified that their investment in the fund was made in 2015 when they were private citizens living in Singapore, before Madhabi Buch joined Sebi.

Hindenburg, however, argued that Buch’s acknowledgment of the investment confirmed their concerns about a conflict of interest. The firm also accused her of maintaining active consulting firms while serving as Sebi chief, which they claim continued to generate revenue during her tenure.

The Sebi chief and her husband countered that these consulting companies became dormant when she joined Sebi in 2017. However, Hindenburg pointed out that one of the firms continued to earn significant revenue even after her appointment.

The controversy revolves around whether Buch’s past investments and business activities interfere with her role in overseeing the investigation into the Adani Group. As of now, the government has chosen not to comment further.