Hindenburg Research has intensified its ongoing conflict with India's stock market regulator, SEBI, and its Chairperson, Madhabi Puri Buch, by leveling new accusations of financial misconduct related to the Adani Group. The US-based short-seller's latest claims follow SEBI and Buch's strong rebuttal of earlier allegations, which they dismissed as "baseless and unfounded."

Hindenburg, which has been embroiled in a public dispute with the Adani conglomerate since releasing a report last year that accused the group of corporate malpractice and stock manipulation, now asserts that it has obtained whistleblower documents that support its latest allegations.

In a statement posted on X (formerly Twitter), Hindenburg said, "SEBI Chairperson Madhabi Buch’s response to our report contains significant admissions and raises new critical questions." The firm contends that Buch's response effectively confirms her investment in a Bermuda/Mauritius fund structure that allegedly involved funds siphoned by Vinod Adani, the brother of Gautam Adani.

Hindenburg further alleged that Buch acknowledged the fund was managed by a childhood friend of her husband, who was an Adani Group director at the time. The firm argued that this relationship represents a "massive conflict of interest," as SEBI was responsible for investigating investment funds linked to the Adani Group, which could include funds in which Buch was personally invested.

The short-seller also accused Buch of operating consulting firms while serving as SEBI chief, questioning the transparency of these businesses, particularly one set up in Singapore. Hindenburg highlighted that one of these firms, Agora Advisory Limited (India), remains 99% owned by Buch and continued to generate revenue while she was involved in investigations concerning the Adani Group.

Moreover, Hindenburg claimed that Buch used her personal email for business communications under her husband's name during her tenure as a SEBI Whole Time Member. The firm has called for Buch to publicly disclose the full list of consulting clients and details of engagements with these entities, as well as commit to a transparent public investigation into the matters raised.

In response, the Buchs and their firm, 360-One, have denied any wrongdoing, asserting that the fund in question never invested in Adani securities and that their stake in the fund was minor with no influence over investment decisions.

SEBI has also defended its approach to the Adani-Hindenburg investigation, stating that 23 out of 24 probes are complete, with the final one nearing conclusion. The regulator has attributed delays to complex enforcement procedures and has also launched its own proceedings against Hindenburg Research, accusing the firm of making misleading disclosures to profit from short selling.