Hindenburg-Adani case: Market experts divided on claims, ’sensationalism’; say report ’lacks substantive evidence’

X (Formerly known as Twitter) saw a flurry of reactions on Sunday following explosive allegations from Hindenburg Research against SEBI Chairperson Madhabi Puri Buch and her husband Dhaval Buch. The research firm, known for its critical reports, accused the couple of having investments in offshore funds with ties to the Adani Group, raising questions about SEBI's impartiality.

In a blog post published late Saturday, Hindenburg suggested that SEBI's hesitance to act on its January 2023 report on the Adani Group could be linked to Buch's alleged investments. The report pointed specifically to investments in IPE Plus Fund 1, a Mauritius-registered fund, and the Bermuda-based Global Dynamic Opportunities Fund. According to Hindenburg, these funds had connections to Vinod Adani, the elder brother of billionaire Gautam Adani, whom the firm previously accused of orchestrating "the largest con in corporate history."

The Buchs were quick to refute the claims, dismissing them as "baseless" and an attempted "character assassination."

What did experts say?

The accusations ignited a fierce debate on Twitter, with several prominent voices weighing in. Deepak Shenoy, a well-known market commentator, criticized Hindenburg's report, tweeting, "Thoda zyada ho gaya, I feel. Basically, they have gone into sensationalism. There is hardly any substance."

Gurmeet Chadha, Managing Partner & CIO of Complete Circle Capital, took a broader view, arguing that the allegations were part of a "systematic attack" on Indian institutions. "RBI, SEBI are amongst the finest in the world. Do not overreact and let facts come out. This is not in isolation!" Chadha tweeted.

Others, like Mohandas Pai, former CFO of Infosys, were more direct in their condemnation. He labelled the report "character assassination by a Vulture Fund," dismissing the allegations as "rubbish aimed at sensationalism."

Intellectual property rights attorney Safir Anand also weighed in, suggesting that Hindenburg's actions were a sign of desperation. "It is clear to me that Hindenburg is desperate against a rising market. One flop is leading to desperation to avert many consequences for them, including legal action," Anand tweeted.

Criminal lawyer Jai Anant Dehadrai criticized the report for lacking substantive evidence, stating, "Routine investment instruments have been sensationalised in the Report to create an impression of ill-gotten and opaque wealth. No criminal court anywhere in the world would take cognisance of this ‘material’ as no criminality is made out."