A Calculated Hit Job: The Allegations That Don’t Add Up
On 10th August, Hindenburg dropped a bombshell report, attempting to implicate Madhabi Buch in a concocted scandal involving offshore funds allegedly tied to Vinod Adani, brother of Gautam Adani. The short-seller, clutching at straws, claims that Buch and her husband, Dhaval Buch, held stakes in shadowy offshore entities—a flimsy basis for suggesting that the SEBI chief is somehow compromised.
This is hogwash. Madhabi Buch was an investment banker before becoming a member of SEBI in 2017. What is the hullabaloo about an investment she made in an offshore firm in 2015? Everyone owns shares in various companies. Having shares or investment signifies nothong, least of all… https://t.co/ui3ZDrzp7R
— Sanjay Dixit ಸಂಜಯ್ ದೀಕ್ಷಿತ್ संजय दीक्षित (@Sanjay_Dixit) August 10, 2024
Hindenburg’s “evidence” hinges on the Buchs’ purported investments in the ‘Global Dynamic Opportunities Fund’ and the ‘IPE Plus Fund’—funds linked, according to Hindenburg, to the Adani family. The report dramatically asserts that Dhaval Buch redeemed nearly $900,000 from these funds in 2018, insinuating that this transaction somehow undermines Madhabi Buch’s ability to regulate the Adani Group. Yet, the facts tell a different story.
The Timeline That Hindenburg Ignored
Let’s break this down: Madhabi Buch’s involvement with these funds ended before she even assumed her role at SEBI. In fact, her husband’s redemption of the funds occurred a full five years before Hindenburg’s first shot at the Adani Group. And let’s not forget—this was a loss-making investment, hardly the kind of windfall that would tempt someone into a conflict of interest. But Hindenburg, it seems, is less interested in the truth than in spinning a narrative.
A Web of Deception:
As if the unfounded claims about offshore funds weren’t enough, Hindenburg goes further down the rabbit hole, concocting an elaborate story of collusion between Madhabi Buch, Vinod Adani, and investment manager Anil Ahuja. The short-seller’s logic? Since Ahuja, who managed the IPE Plus Fund, once served on the board of Adani Enterprises, there must be a sinister connection.
Never mind that Ahuja’s illustrious career has seen him on the boards of numerous prestigious companies. Hindenburg would have us believe that his brief stint with Adani Enterprises is proof of a nefarious nexus with Buch. The reality, of course, is far more mundane: Buch was merely a customer of Ahuja’s fund, with no direct ties to the Adani empire.
Hindenburg’s Desperation: A Thinly Veiled Agenda
It’s clear that Hindenburg is grasping at straws, its baseless allegations an attempt to deflect from its own failures. After its high-profile attack on the Adani Group failed to deliver the knockout blow it hoped for, the short-seller is now targeting SEBI in a bid to keep its floundering narrative alive. But this time, the target is too well-respected, the claims too tenuous to gain traction.
In a bizarre twist, Hindenburg even criticizes Buch for diversifying her investments before her SEBI tenure, implying that her failure to stick to Indian mutual funds is somehow a dereliction of duty. This, despite the fact that her offshore investments were perfectly legal and entirely irrelevant to her current role.
A Baseless Smear That Proves Nothing
Hindenburg Research has once again shown its true colors—peddling sensationalism and sowing doubt, all while failing to substantiate its wild claims. The attack on Madhabi Buch is nothing more than a cynical attempt to undermine confidence in India’s financial regulatory system. But in its rush to scandalize, Hindenburg has overreached, and the flaws in its argument are glaring.
As the dust settles, it’s clear that this latest hit job is just that—an ill-conceived, poorly executed attempt to create a scandal where none exists. Madhabi Buch’s integrity remains intact, and SEBI’s commitment to fair regulation is unshaken. The real story here isn’t about conflict of interest—it’s about a short-seller’s desperate bid to stay relevant, even if it means playing fast and loose with the truth.
