Hindenburg's Allegations Against Adani and SEBI

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 Hindenburg's Allegations Against Adani and SEBI

Disclaimer: This blog post is based on report issued by Hindenburg on their website. The purpose of this post is to simplify complex information for general readers. 


Hindenburg Research, a well-known short-seller, has made serious allegations against the Adani Group and India's securities regulator, SEBI. While the full extent of these allegations is complex, we can break down the key points into simpler terms.


The Adani Group and Offshore Entities

The core of the allegations revolves around the Adani Group's use of offshore companies, particularly those based in Mauritius. These offshore entities are said to have been involved in:

  • Hidden transactions: Concealing financial dealings within the Adani Group.
  • Stock manipulation: Potentially influencing the price of Adani Group stocks.
  • Tax evasion: Possibly avoiding taxes through complex financial structures.

SEBI's Alleged Role

Hindenburg has also accused SEBI, India's securities regulator, of not taking sufficient action against the Adani Group. Key allegations include:

  • Lack of investigation: SEBI is claimed to have not thoroughly investigated the Adani Group's financial dealings.
  • Conflict of interest: The report alleges a potential conflict of interest involving SEBI officials and their connections to the Adani Group.
  • Favoritism: Hindenburg suggests that SEBI may have shown preferential treatment to the Adani Group.


The Adani Group is alleged to have used a complex network of offshore entities, primarily based in Mauritius, to manage its finances. At the heart of these allegations is the IPE Plus Fund, a small but crucial part of this financial structure. Managed by IIFL, a wealth management firm with a controversial past, the fund is said to have received a significant portion of its assets from the Adani Group.

Vinod Adani, brother of Gautam Adani, is central to this web of companies. Documents suggest that funds were siphoned from the Adani Group through overvalued power equipment imports and funneled into these offshore entities. This intricate financial arrangement raises concerns about potential money laundering, tax evasion, and stock manipulation.


SEBI Chairperson Linked to Offshore Funds Tied to Adani

Hindenburg Research has made serious allegations against the Securities and Exchange Board of India (SEBI) Chairperson, Madhabi Buch. The report claims a direct conflict of interest between Buch and the Adani Group.

A central point of contention is Buch and her husband's investment in offshore funds, specifically the IPE Plus Fund, which is linked to a complex network of financial entities associated with the Adani Group. These offshore funds are at the heart of allegations of financial irregularities, including money laundering and stock manipulation.

What's particularly concerning is the timing of these investments. The report suggests that Buch's husband divested from these funds shortly before she took on a crucial role at SEBI. This raises questions about the transparency and independence of the regulator. He also posted a copy of mail from Madhabi Buch’s personal account asking for the redemption of these units.

If these allegations are true, they paint a disturbing picture of potential collusion between a powerful business conglomerate and the nation's securities watchdog.

Hindenburg has identified two additional Mauritius-based funds, EM Resurgent Fund and Emerging India Focus Funds, which they allege were used to manipulate Adani stock prices. 

These funds are linked to India Infoline and show trading patterns consistent with stock price manipulation. Despite these concerns, SEBI has taken no public action against these funds.


Hindenburg alleges a potential conflict of interest involving SEBI Chairperson Madhabi Buch and her offshore business interests.

Buch maintained a 100% ownership in Agora Partners, a Singapore-based consulting firm, from its inception in March 2013 until March 2022. This period overlaps with her appointment as a Whole Time Member of SEBI in April 2017 and her subsequent elevation to Chairperson in March 2022.

Shortly before assuming the role of SEBI Chairperson, Buch transferred ownership of Agora Partners to her husband. This rapid transfer of ownership has raised concerns about transparency and potential conflicts of interest.


Hindenburg alleges a potential conflict of interest related to SEBI's favorable stance on Real Estate Investment Trusts (REITs).

Madhabi Buch's husband, Dhaval Buch, served as a senior advisor to Blackstone, a major player in the Indian REIT market. During this period, SEBI implemented several regulatory changes benefiting REITs, including new consultation papers, regulatory frameworks, and board nomination rights.

Simultaneously, Madhabi Buch publicly promoted REITs as a promising investment, without disclosing her husband's ties to Blackstone. This raises questions about the objectivity of SEBI's REIT-related policies and the potential influence of Blackstone on these decisions.


The allegations leveled by Hindenburg Research against the Adani Group and SEBI paint a complex picture of potential financial irregularities, conflicts of interest, and regulatory lapses. The use of offshore entities, the involvement of key individuals, and the timing of certain events have raised serious questions about the transparency and integrity of the Indian financial system.

It's crucial to remember that these are allegations and the legal process will determine the truth. However, the issues raised by Hindenburg demand a thorough and independent investigation to restore investor confidence in the Indian market.

The public deserves transparency, accountability, and a fair regulatory environment. Only a comprehensive investigation can shed light on these serious allegations.


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