IG Hindenburg was trying to let them know that they are not intimidating enough and have skeletons in the closet that could become public if required. I assume Hindenburg has more research and evidence already.
I am saying this from memory as the report came out some time ago. I thought that the Buchs invested directly in IPE Plus. The 'whistleblower' documents mention this fund. Hindenburg linked this to Adani since the fund manager was also a Director in an Adani company. (He was also a Director in HDFC Bank among many other things.)
Also, MPB's letter in 2018 talks about her husband redeeming the investments. The letter from DB to actually redeem - with attache documents - was also leaked.
The kind of link made between this investment and Adani can also be extended to almost every bureaucrat - they have to choose the fund manager for their NPS account, and that fund manager can invest somewhere else, and a link could be created!
The Agora companies are niggling though. Either MPB and/or SEBI can disclose what was disclosed to SEBI.
While, none of us know if there was any wrongdoings.
The lack of transparency is surely concerning and the sense that officials can brazen it out with a "trust me, I did nothing wrong" approach, doesn't help things.
Isn't the rule - innocent until proven guilty? Not innocent until some short seller raises unsubstantiated, error-strewn accusations. Error-strewn - they didn't even get their Mauritius piece right. FSA denied the presence of a regulated fund in their press release.
Absolutely agree, there has to be guilt established before we condemn anyone.
That said, in any whistleblower incident - the "who" and "why" is not as important as to the "what".
None of the events in the allegations made (on the investments & the consultancy) against the Buches have been denied. So, it probably is safe to assume, the events in the accusations did happen.
At a basic level, what is under question is more on if there was impropriety and were proper disclosures were made?
This incident brings up the need to have better transparency from people heading institutions.
Ms Sucheta Dalal's also asks Shouldn't SEBI Officials Be Subject to the Same Standards of Probity and Compliance It Demands from Market Participants?
The obvious answer should have been a resounding "yes!", but it appears it doesn't seem to apply to our chairperson.
The Bigger question we should be asking is how Madhabi got the job. yes she is IIM graduate and she was CEO of ICICI securities and mid level management in some Singapore company. While its a good resume, its not a standout one. Is is big enough to warrant a seat in Sebi and eventual chair. I believe it was the first time that an outsider is made chairperson. I would have imagined if they were going to go that route, it would be some very eminent personality.
My theory is that its Adanis clout and her relationship with Adani that got her the job in the first place. The fund manager of the Singapore fund was not just a childhood friend of her husband but was also a former Adani director. The connection with Adani would go further. I they start to investigate her role in ICICI, i think more can come out.
IG Hindenburg was trying to let them know that they are not intimidating enough and have skeletons in the closet that could become public if required. I assume Hindenburg has more research and evidence already.
I am saying this from memory as the report came out some time ago. I thought that the Buchs invested directly in IPE Plus. The 'whistleblower' documents mention this fund. Hindenburg linked this to Adani since the fund manager was also a Director in an Adani company. (He was also a Director in HDFC Bank among many other things.)
Also, MPB's letter in 2018 talks about her husband redeeming the investments. The letter from DB to actually redeem - with attache documents - was also leaked.
The kind of link made between this investment and Adani can also be extended to almost every bureaucrat - they have to choose the fund manager for their NPS account, and that fund manager can invest somewhere else, and a link could be created!
The Agora companies are niggling though. Either MPB and/or SEBI can disclose what was disclosed to SEBI.
> I thought that the Buchs invested directly in IPE Plus.
That was probably the intention. But they did it via GDOF. See here: https://hindenburgresearch.com/wp-content/uploads/2024/08/Buch6.png
While, none of us know if there was any wrongdoings.
The lack of transparency is surely concerning and the sense that officials can brazen it out with a "trust me, I did nothing wrong" approach, doesn't help things.
Isn't the rule - innocent until proven guilty? Not innocent until some short seller raises unsubstantiated, error-strewn accusations. Error-strewn - they didn't even get their Mauritius piece right. FSA denied the presence of a regulated fund in their press release.
Absolutely agree, there has to be guilt established before we condemn anyone.
That said, in any whistleblower incident - the "who" and "why" is not as important as to the "what".
None of the events in the allegations made (on the investments & the consultancy) against the Buches have been denied. So, it probably is safe to assume, the events in the accusations did happen.
At a basic level, what is under question is more on if there was impropriety and were proper disclosures were made?
This incident brings up the need to have better transparency from people heading institutions.
Ms Sucheta Dalal's also asks Shouldn't SEBI Officials Be Subject to the Same Standards of Probity and Compliance It Demands from Market Participants?
The obvious answer should have been a resounding "yes!", but it appears it doesn't seem to apply to our chairperson.
The Bigger question we should be asking is how Madhabi got the job. yes she is IIM graduate and she was CEO of ICICI securities and mid level management in some Singapore company. While its a good resume, its not a standout one. Is is big enough to warrant a seat in Sebi and eventual chair. I believe it was the first time that an outsider is made chairperson. I would have imagined if they were going to go that route, it would be some very eminent personality.
My theory is that its Adanis clout and her relationship with Adani that got her the job in the first place. The fund manager of the Singapore fund was not just a childhood friend of her husband but was also a former Adani director. The connection with Adani would go further. I they start to investigate her role in ICICI, i think more can come out.
Them having consulting companies on the side!!!!
Itna to chalta hai. :p