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In a stunning turn of events that has sent shockwaves through India’s financial and political landscape, U.S.-based short-seller Hindenburg Research has accused Madhabi Puri Buch, the head of India’s market regulator, the Securities and Exchange Board of India (SEBI), of holding investments in offshore funds linked to the Adani Group. The allegation, which surfaced on Saturday, has added a new layer of complexity to the ongoing scrutiny of one of India’s largest conglomerates and raised significant questions about potential conflicts of interest at the highest levels of market oversight. https://bit.ly/3SNAdMF

Hindenburg Research has received a show cause notice from the Securities and Exchange Board of India (SEBI) for allegedly engaging in fraudulent and unfair trade practices related to trading in Adani Enterprises stock in violation of Indian regulations. The US-based investment research firm has dismissed the notice as an attempt to silence and intimidate those who expose corruption in India. SEBI's investigation into the matter remains inconclusive, and the notice directs Hindenburg to show cause as to why inquiries should not be held against them and disgorgement of unlawfully made profits. #AsiaRisk #RegulatoryEnforcementActions #India Follow us for daily updates on risk and operations in Asia! https://lnkd.in/gF9bytdf

First Adani Group, now Kotak Mahindra Bank and SEBI? A US-based activist investor Hindenburg has again spoken on the Adani Group controversy but the targets of the research firm this time are Kotak Mahindra Bank and SEBI. After the morning announcement of the reports, the share price of Kotak Mahindra Bank fell by 4%. According to the Hindenburg report, a fund run by Kotak built a short position before the report was published on January 25, 2023. Although the firm has not yet revealed the name of the client, the claims are imposed on the Kotak Bank on the basis that the Kotak Bank is internally aware of the fact that such a report on Adani Group was bound to be released as the Bank has the partner of Hindenburg as their client. Immediately after the allegations, the firm released a statement that Hindenburg has never been a client of the firm nor an investor in Kotak India Opportunities Fund(KIOF). They have also mentioned that they were never aware of any of their clients being in partnership with Hindenburg. KIOF mentioned that the investments were made on advice and for the benefit of their client Kindon. The statement made by Hindenburg for same is “One might think that a securities regulator would be interested in meaningfully pursuing the parties that ran a secret offshore shell empire engaging in billions of dollars of undisclosed related party transactions through public companies while propping up its stocks through undisclosed share ownership via a network of sham investment entities. Instead, Sebi seems more interested in pursuing those who expose such practices. This stance is broadly in line with the actions of other elements of the Indian government which have sought to arrest four journalists for writing critical articles about Adani and expelled members of parliament who were critical of Adani”. #Finance #FinancialMarkets #LatestUpdates #SEBI #Hindenburg

US short-seller #HindenburgResearch has published another explosive new report linking #SEBI chairperson #MadhabiPuriBuch to the ‘Adani money siphoning scandal’. The report comes more than a year after the firm published allegations of insider trading and other stock market violations by the Adani Group — claims that have been repeatedly denied by the Gautam Adani-led conglomerate.  Here are top 10 takeaways from the #HindenburgReport:

https://lnkd.in/epuvNhjb The Securities and Exchange Board of India (SEBI) alleged that Hindenburg Research engaged in unfair trade practices in its report on Gautam Adani. SEBI says the firm “deliberately sensationalized and distorted certain facts” in collaboration with its silent partner, New York hedge fund Kingdon Capital Management. The report, that Hindenburg released in January 2023, disrupted Adani’s $2.5bn share sale and caused a $140bn market value loss. Hindenburg denied the allegations and called them “an attempt to silence and intimidate those who expose corruption and fraud perpetrated by the most powerful individuals in India.” After SEBI’s show-cause notice, penalties and market restrictions could follow. #India #SEBI #unfairtrade #reporting #penalties #marketrestrictions https://lnkd.in/expUKURK

SEBI's Crackdown: A Level Playing Field for Mutual Fund Investors The Indian financial landscape is set to witness a significant change as SEBI introduces stringent insider trading regulations for mutual funds. Effective November 1, 2024, mutual fund units will be brought under the ambit of the Prohibition of Insider Trading Regulations. This landmark move comes in response to growing concerns about unfair practices within the industry. Instances of fund managers and senior officials cashing out before the market realized the impending doom of certain schemes have eroded investor trust. SEBI's expanded definition of 'insider' is a step in the right direction. By casting a wider net, the regulator aims to prevent information asymmetry and ensure a level playing field for all investors. The new rules will cover a broader spectrum of individuals, including auditors, legal advisors, and consultants, who may have access to sensitive information. While the industry may face challenges adapting to the new regulations, the long-term benefits are undeniable. Increased transparency and accountability will foster greater investor confidence in mutual funds. This is a crucial step towards building India's robust and investor-friendly mutual fund industry. What are your thoughts on SEBI's new regulations? Do you think they will be effective in preventing insider trading? #SEBI #mutualfunds #insidertrading #investing #financialmarkets #regulation #investorprotection #Linkedin #connections

News - : Hindenburg Research has recently hinted at another major revelation involving an Indian company, sparking widespread speculation. On August 10, 2024, the firm posted a cryptic message on X (formerly Twitter) saying, "Something big soon India," suggesting that a new report is on the horizon. This comes after their explosive January 2023 report that accused the Adani Group of significant financial misconduct, leading to a dramatic fall in the company's stock prices. While Hindenburg hasn't provided any specific details about this new development, the financial world is on high alert, given the impact of their previous report on the Adani Group. The January report had led to over $100 billion in losses for Adani's companies and drew intense scrutiny from global financial markets. The upcoming report could have similarly significant consequences depending on the target.

SEBI - Hindenburg - Indian Market Regulartor’s Chairperson who was supposed to investigate Adani group had investments in the same obscure funds in Mauritius which were used by Adani to manipulate Indian Share market. There is no doubt that there is massive conflict of interest #SEBI’s chairperson Buch has with Adani & soecifically the offshore entities that facilitated the share market manipulation. The @HindenburgRes documents are crystal clear. IIFL, Trident Trust Mauritius, the GDOF fund, all these figure in our Adani investigation with The Organized Crime and Corruption Reporting Project here - https://lnkd.in/dUf5n_i9 The same Buch used for their investment. So the SEBI chairperson knew who to ask, where to dig, if it really wanted to investigate Adani. But, it didn’t. Now we know why. & also will the #SupremeCourt get down from its high horse & really investigate the #Adani group. Not like the last time when “they hit the wall”, with SEBI (now we know why) & appointed a compromised committee where 3 out of 5 “experts” had conflict of interest with Adani Group. The real question is ‘Will there be accountability?’ But go happily scream “Attack on India” while a select few loot your money. 🙄 Read Hindenburg Research report here - https://lnkd.in/gu7Q8haJ #HindenburgReport #SEBI #Adani #SupremeCourt #ShareMarket #India #TaxHaven

#MarketsWithMC | #SEBI accuses #Hindenburg Research of misleading #market by claiming its exposure to #Adani Group securities was limited to #US-traded bonds and non-Indian derivative instruments. Ashish Rukhaiyar brings more details 🔽

Hindenburg vs Sebi Chair: What We Know So Far (Updated) Hindenburg made several allegations against Adani Group in Jan 2023. All denied by Adani. So far Sebi has made no case against Adani despite several long-pending investigations in to the group. But Sebi has sent Adani officials and Hindenburg show cause notices earlier this year for alleged violation of securities regulations. https://lnkd.in/dwjw7sTt On Saturday Hindenburg made 3 *allegations* against the Sebi chair. https://lnkd.in/dCQpb7AP Madhabi Puri Buch and her husband Dhaval Buch have responded to them in a detailed second statement issued on Sunday evening. ------------------------------------------------------------------------------------- Hindenburg Allegation 1. That in 2015 Madhabi Puri Buch and her husband invested via a sub-fund that was part of a fund structure (parent fund with several sub-funds) also used by Vinod Adani to make some investments. Buch Response - The Buchs invested in the fund in 2015, as private citizens living in Singapore and almost 2 years before Madhabi joined SEBI as WTM in 2017. - The fund CIO, Anil Ahuja, is Dhaval’s childhood friend. They redeemed when he exited. - The fund did not invest in any bond, equity, or derivative of any Adani group company, the Buchs said. The sub-fund "made zero investments in any shares of the Adani Group either directly or indirectly through any fund," according to statement by IIFL Wealth (360 One) who managed the funds. ------------------------------------------------------------------------------------- Hindenburg Allegation 2. That Madhabi promoted REITs as a promising asset class but didn't disclose her husband was adviser to Blackstone that runs 2 of 4 REITs in India. Buch Response - Dhaval Buch, formerly with Unilever, consults Blackstone in areas of supply chain management and is not associated with real estate. - On his appointment in 2019, the Blackstone Group was immediately added to Madhabi’s recusal list maintained with SEBI. - Sebi regulations on REITs were approved by its board after public consultation. ----------------------------------------------------------------------------------- Hindenburg Allegation 3. That Madhabi has continued to own two consulting firms while at Sebi. Their report claims Madhabi owned 99% of Agora Advisory on March 31, 2024. Buch Response - The two consulting firms became immediately dormant when Madhabi was appointed to Sebi. - Her ownership in them was disclosed to Sebi. - Later Dhaval Buch revived them for his consulting practice. - When the shareholding of the Singapore firm moved to Dhaval, this was disclosed to Sebi and relevant Singapore and Indian authorities. Read... https://lnkd.in/dVtRYW_w