The ongoing dispute between short-seller Hindenburg Research and markets regulator SEBI took a new turn last week, as Hindenburg published a report accusing SEBI Chairperson Madhabi Puri Buch and her husband of links to offshore funds associated with billionaire Gautam Adani's brother. However, in a recent development, government officials have indicated that the administration is unlikely to intervene immediately in this controversy.
Senior sources cited in media reports believe the allegations leveled against Buch and her family to be unfounded. They noted that Hindenburg may have ulterior motives to profit quickly from turmoil in Indian markets. Both SEBI and the administration are carefully monitoring how the situation plays out.
The government views Hindenburg's report as a malicious attempt to undermine confidence in the primary regulator and negatively impact domestic markets. Sources state the firm may be reacting strongly due to an ongoing SEBI inquiry into its practices.
Buch and her husband have denied any wrongdoing, asserting the offshore investments in question were made years before she assumed her current role. They claim full disclosure was provided as per applicable norms.
With the key parties standing their ground, and no official complaints received yet, the administration seems inclined to let the issue run its due process for now. However, it has made clear this was an unwarranted attempt to destabilize Indian financial systems for possible profit motives. Investors have been advised not to panic but verify facts independently during such disputes.
