From Pedro Goncalves of Yahoo Finance UK:
Adani Enterprises shares fell more than 7% after US short seller Hindenburg Research accused Securities and Exchange Board of India (SEBI) Chairperson Madhavi Puri Buch and her husband of making undisclosed investments in an offshore fund structure used by Vinod Adani, brother of Adani Group founder Gautam Adani.
The report suggests that the reason why SEBI did not take action against the Adani Group despite evidence of fraud may be because of Buch’s involvement in these funds.
“Madhavi Buch and her husband invested very small amounts of assets in a multi-tiered offshore fund structure across high-risk jurisdictions overseen by a company reportedly linked to the Wirecard scandal. The fund was run by an Adani director and was the same company used heavily by Vinod Adani in the Adani cash misappropriation scandal,” the report added, according to local media.
Hindenburg Research has called for further investigation into these allegations, and has pledged to donate any revenue it makes from the report to causes supporting freedom of expression.
SEBI has yet to announce the results of multiple lengthy investigations into the Adani Group after India’s Supreme Court ordered it to conclude the probes within three months in January.
Buch and her husband issued a statement alleging that Hindenburg’s report was an attack on SEBI’s credibility and an attempt at “persona non grata”.
Adani Energy Solutions (ADANIENSOL.NS) pared most of its losses after falling as much as 17 percent, with all but one of the conglomerate’s 10 stocks falling.
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