Hindenburg stated in a report posted on its web site that “the present chairperson of SEBI and her husband Dhaval Buch hid holdings in equivalent offshore Bermuda and Mauritius funds based mostly in Victoria. In the identical advanced nested construction utilized by Vinod Adani.
Dubai-based Vinod, brother of Gautam Adani, is alleged to have used the stated construction to put money into the Indian market, allegedly diverting funds from excessive invoices for energy tools into the Indian market. adani group.
The report, citing whistleblower paperwork, stated the Buch household appeared to have opened an IPE Plus Fund 1 account in Singapore on June 5, 2015. The Mauritius offshore fund was allegedly arrange by Adani administrators by way of India Infoline and registered within the tax haven of Mauritius.
“Besides being used as an alleged conduit for Vinod Adani’s funds, the small fund has other close ties to Adani. According to its biography, the founder and chief investment officer of IPE Plus fund CIO) is Anil Ahuja, director of Adani Power’s offshore companies with hidden shares in Bermuda and Mauritius funds located in the same complex nested structure used by Vinod Adani. ,” Hindenburg said.
Sebi’s reluctance to take meaningful action against suspected overseas shareholders of the Adani group may have been due to Buch’s complicity in using the exact same funds as Vinod Adani, it is claimed.
The US short-seller also produced copies of Ministry of Corporate Affairs records ostensibly showing that the Sebi chief owns 99 per cent of a consultancy firm called Agora Advisory, where her husband is a director.
“In 2022, the entity reported consulting income of US$261,000, which was 4.4 times her salary disclosed at SEBI,” the report states, adding that the offshore Singapore entity is not required to disclose financial statements, so it is unclear from The amount of revenue earned from consulting business and from whom.
“In short, despite the existence of thousands of mainstream, reputable onshore Indian mutual fund products and the fact that she now oversees the industry, the documents show that SEBI Chairman Madhabi Buch and her husband were involved in a multi-tiered business with very few assets. Holding shares in offshore fund structures are heavily used by Vinod Adani,” the report said.
Pointing out that Sebi has not taken any action against other suspicious Adani shareholders operating in the India Infoline: EM Resurgent Fund and Emerging India Focus funds, he said: “If Sebi really wants to find offshore fund holders, maybe the Sebi Chairman can go through Here’s how to start: Looking in the mirror, we find it unsurprising that Sebi is unwilling to follow a trail that could lead to its chairmanship.
Referring to Sebi CEO’s husband Dhaval Buch, Hindenburg said that during his tenure as a senior adviser to Blackstone, regulators approved the IPOs of two REITS backed by private equity firms Mindspace and Nexus Select Trust.
“Dhaval Buch’s tenure as an advisor to Blackstone saw Sebi propose, approve and drive significant changes to REIT regulations. These included 7 consultation papers, 3 comprehensive updates, 2 new regulatory frameworks and unit nomination rights, which were particularly beneficial at private equity firms such as Blackstone.
ET has written to Sebi seeking comment on the allegations. Awaiting their response.
