Hindenburg-SEBI Row: Here's What The Various Experts Have To Say

In a report late Saturday, Hindenburg Research accused the Securities and Exchange Board of India's Chairperson Madhabi Puri Buch of a conflict of interest, while investigating allegations made against the Adani Group.

The report by the Nathan Anderson-led short seller alleged that Buch and her husband, Dhaval Buch, had investments in a complex fund that was used to siphon and buy back shares of the Adani group companies. This was denied strongly by the SEBI chairperson and the Adani Group the day after the report was published.

But, veterans in various fields, including markets, law and economy, have condemned this action having said that this is done to target India and slow down its bullish sentiment.

The latest report by Hindenburg Research which alleges that the head of the country's market regulator, Securities and Exchange Board of India, has a conflict of interest, is an attack on the country and intends to malign Madhabi Puri Buch, the person behind the growth in the capital market, said market veteran Madhusudan Kela.

The allegations and subsequent responses make it clear that there is a larger purpose to the report, the founder of MK Ventures told NDTV Profit in an exclusive interview. "It is maligning the image of someone who has so immensely contributed to the Indian capital market under various roles."

The report is "based on a lot of meaningless interpretation and correlation" Keki Mistry, independent director and advisor to many companies told NDTV Profit.

He further added that post the explanation by the head of the country's market regulator, Securities and Exchange Board of India clarifies any questions raised in the report.

He also said that markets have disregarded allegations, and investors have already moved ahead.

This report "is aimed at discrediting regulator and causing chaos and losses in markets for investors — thus slowing down bullish sentiments," Former Union Minister Rajeev Chandrasekhar said in a post on X.

I've read this report, it's no smoking gun, Chandrasekhar said. "It's classic Congress style innuendo and lies glued together with a few grains of truth — aimed at discrediting regulator and causing chaos and losses in markets for investors — thus slowing down bullish sentiments."

"I strongly condemn what Hindenburg has done I think it's completely propaganda oriented... completely baseless and they are trying to manipulate the facts to establish chaos in the market," said Vikas Khemani Founder, Carnelian AMC

India's corporate governance standards are far better than many developed nations, he said.

"People who preach us governance have far more compromised markets... I am not making the point that our markets are perfect, and we don’t have issues... but every time, vested interest question India and her credibility," he wrote in a post on X.

Krishnamurthy V Subramanian, who served as the 17th chief economic adviser to the Government of India, described the latest allegations as a “hit job that lacks intellectual rigor.”

He backed the SEBI chairperson stating that: “I’ve personally known SEBI Chairperson Madhabi for about two decades. Given her unimpeachable integrity and her intellectual prowess, I’m sure she will shred to smithereens this Hindenburg hit job.”

There is absolutely no material merit in this so-called report and is on the basis of innuendo and insinuation, according to Jai Anant Dehadrai, Advocate, Supreme Court.

"The report paint the Butch couple as though they were they had some conflict of interest or that they were involved with the Adani Group. I don't think there is any Merit to it at all," he said. Hindenburg has been discredited and has no love for the Indian investors, he added.