India’s market regulator chief rejects bias in Adani probe

NEW DELHI

India's market regulator chief rejected on Sunday allegations by U.S. short-seller Hindenburg Research that claimed past offshore investments may have prevented her from properly investigating corporate malfeasance allegations against the Adani Group.

Last year, Adani Group saw billions of dollars wiped from its market value after a bombshell report by the Hindenburg forensic financial research firm accused it of "brazen" corporate fraud.

The family-run conglomerate's founder, Gautam Adani, the world's 12th richest person, denied the allegations made in that report, calling it a "deliberate attempt" to damage its image for the benefit of short-sellers.

The fraud claims wiped more than $150 billion off the group's market value and prompted India's top court to ask the Securities and Exchange Board of India (SEBI) to probe the allegations.

On Aug. 10, citing whistleblower documents, Hindenburg accused SEBI chairperson Madhabi Puri Buch and her husband of having held investments in offshore funds that Vinod Adani also allegedly used.

"We suspect SEBI's unwillingness to take meaningful action against suspect offshore shareholders in the Adani Group may stem from Chairperson Madhabi Buch's complicity in using the exact same funds used by Vinod Adani, brother of Gautam Adani," Hindenburg said.

It added that weeks before her appointment to SEBI as a "whole-time member" in 2017, her husband requested to be the sole operator of the account.

Buch was later appointed as chairperson of the markets watchdog in 2022.

She said her and her husband's "life and finances are an open book", in a statement.