The much-hyped Hindenburg Research report targeting SEBI Chairperson Madhabi Puri Buch has crumbled like a house of cards, with experts dismissing it as a mere “agarbatti smoke” rather than a “smoking gun.”
The US short-seller, infamous for its attacks on high-profile targets, had alleged that Buch held stakes in offshore funds linked to the Adani Group, a claim which may have shock many.
However, a deep dive into the matter reveals a far cry from the dramatic narrative spun by Hindenburg.
Ajay Rotti, a tax expert, has categorically dismissed the report as a sensationalist attempt to manipulate the Indian market.
The crux of Hindenburg’s allegation was that Buch’s investment in an offshore fund, IPE Plus Fund 1, was linked to the Adani Group.
Yet, a closer look shows that this fund had zero exposure to Adani Group securities throughout its existence.
360 ONE Asset Management, the fund’s operator, has issued a clear statement denying any connection to the Adani Group.
The fund’s investment strategy was solely guided by its investment manager, with Buch and her husband holding a negligible stake of less than 1.5%.
This unequivocally debunks Hindenburg’s claims of a conflict of interest.
The Adani Group has also vehemently rejected the allegations, labeling them as a malicious attempt to tarnish its reputation.
It’s worth noting that the Supreme Court has already dismissed similar accusations leveled by Hindenburg in the past.
Rotti is scathing in his assessment of Hindenburg’s tactics. He believes the report is a desperate ploy to create market panic and profit from short selling
The tax expert highlights the irony of Hindenburg accusing SEBI of inaction when the regulator has already taken steps against the short-seller.
As the dust settles on this affair, it becomes increasingly evident that Hindenburg’s report on SEBI was nothing more than a poorly executed market manipulation attempt.
