Adani Stocks Plunge Amid SEBI Conflict of Interest Claims

12 Aug 2024 , 10:18 AM

Adani Group equities plummeted sharply on Monday, August 12, with Adani Enterprises, Adani Ports, Adani Power, and other shares dropping up to 5-6% from the previous close, according to a new report from US-based short seller Hindenburg Research.

Benchmark indices Nifty 50 and BSE Sensex also dipped after opening, trading down approximately 0.6% in the morning. The Nifty was down 143 points at 24,224, and the Sensex was down 465 points at 79,241.

Earlier this weekend, Hindenburg issued a new report. It claimed that SEBI chairperson Madhabi Puri Buch may not have undertaken a thorough probe into misconduct at Adani group entities due to a potential conflict of interest from investing in the same funds used by Adani officials to move money.

The charges have been refuted by market regulator SEBI, Madhabi Puri Buch, and her husband Dhaval Buch, who have issued comprehensive rebuttals to the claims stated in the Hindenburg report. SEBI has also confirmed that the chairperson provided sufficient disclosures at all times.

Madhabi and Dhaval Buch stated that they have no investments in Adani entities. According to them, Blackstone was added to Madhabi’s recusal list with Sebi following Dhaval’s appointment as an adviser to the investment fund, and two consulting firms founded by Madhabi went dormant as a result of her nomination to SEBI.

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