Hindenburg vs Adani Saga: If allegations true, people involved should resign, says veteran investor Marc Faber
Marc Faber is an eminent investor and publisher of ‘The Gloom, Boom & Doom Report’, which offers a contrarian perspective on global financial markets and economic conditions. “India’s Sebi and the United States’ SEC were formed to protect the interests of small investors. They instead shield big businesses,” said Faber.
![Hindenburg vs Adani Saga: If allegations true, people involved should resign, says veteran investor Marc Faber](https://cdn.zeebiz.com/sites/default/files/2024/08/12/310994-648448-fabermarc-0206181.jpg?im=FitAndFill=(1200,900))
Against the backdrop of US-based short seller Hindenburg Research alleging that Sebi Chairperson Madhabi Puri Buch previously held investments in offshore funds also used by the Adani group, veteran investor Marc Faber said that if the allegations are true, the people involved should resign.
Faber is an eminent investor and publisher of ‘The Gloom, Boom & Doom Report’, which offers a contrarian perspective on global financial markets and economic conditions.
"Hindenburg has been publishing about the case namely that it's not transparent because some people associated with me said he (may) have a conflict of interest. We have to assume that these allegations are true. If they are true, the people involved have to resign, there's no question about this," he said.
“India’s Sebi and the United States’ SEC were formed to protect the interests of small investors. They instead shield big businesses,” added Faber.
He also said that how the stock market moves is not always reflective of actual economic conditions.
Meanwhile, Madhabi Puri Buch and her husband Dhaval Buch released a second, more detailed statement on Sunday, categorically denying the charges levelled by the US short seller, and sharing a host of specific details including their career history, education and certain investments.
However, responding to the 15-point statement issued by the Buchs, Hindenburg took to microblogging site X (formerly Twitter) to say that their responses include "several important admissions” and raise “numerous new critical questions". Read more
On Saturday, the US-based firm alleged, citing whistleblower documents, that Madhabi Puri Buch and Dhaval Buch held stakes in an offshore fund where a substantial amount of money was invested by associates of Vinod Adani, brother of Adani group chairman Gautam Adani.
Meanwhile, capital market regulator Sebi asked investors to remain calm and exercise due diligence before reacting to such reports.
Mutual fund industry body AMFI also came in support of the Sebi chairperson, saying that the US short-seller is trying to create a trust deficit in the market ecosystem. AMFI said that external comments on the markets regulator's Chairperson "not only attempt to undermine Madhabi Buch's contribution to the Indian capital market, but it also undermines our country's economic progress, and creating a trust deficit in the market ecosystem must be seen for what they truly are -- attempts to create sensation by connecting random events done in the past".
With inputs from agencies
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