Hindenburg vs Adani Saga: Sebi chairperson should resign, says Daniel Geltrude

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, eminent business and tech analyst, and economist Daniel Geltrude said that the allegations "can destroy investor confidence". 

"Corruption involving offshore funds can erode foreign inflows," said Geltrude. 

He also said that the Sebi chairperson should resign. "I think there's a real concern here because if the chair is actually linked to this situation, it's going to destroy investor confidence in India... People are going to be skeptical so if you have a scandal involving the chair of the security gate standard, well, that's something we have to take very very seriously," added Geltrude. 

ALSO READ: Hindenburg attacking Sebi credibility, indulging in character assassination attempt of its chairperson, say Buchs 

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