Market veteran Madhusudhan Kela strongly dismissed US short seller Hindenburg Research's allegations against Sebi chief Madhabi Puri Buch and her husband, labeling them as part of a broader 'conspiracy' aimed at undermining India's reputation rather than presenting any genuine claims against individuals or groups.
Drawing a contrast with the January 2023 report that caused a significant sell-off in Adani Group stocks and the broader market, Kela is confident that this time the impact will be minimal.
"I am very clear that investors do not need to worry. This is not going to destabilise India or the markets. Something else might happen tomorrow that moves the market, but this event? No, I wouldn’t be nervous at all," Kela emphasised in a conversation with CNBC-TV18.
The latest Hindenburg report alleges that Sebi chief Madhabi Puri Buch and her husband, Dhaval Buch, held interests in offshore funds based in Bermuda and Mauritius, which were reportedly used by Gautam Adani's brother, Vinod Adani, to acquire and trade significant shares in the Adani Group.
However, the Buchs clarified that their 2015 investment in offshore entities—cited in Hindenburg’s August 10 report—was made while they were private citizens living in Singapore, two years before Madhabi’s appointment as a SEBI director. They explained that the investment decision was influenced by Dhaval’s childhood friend, Anil Ahuja, a seasoned professional with experience at Citibank, JP Morgan, and 3i Group Plc.
Kela pointed out that the report seemed filled with 'conspiracy' claims and failed to present any clear, actionable allegations.
"If you’re a private individual who invested in a fund based on a friend’s recommendation, and that fund was redeemed when the friend left their job—what’s wrong with that? All the money made is legal, with a 30-year career behind it," Kela remarked.
The report also accused Blackstone Group, a global asset management firm where Dhaval Buch serves as an adviser, of benefiting from regulatory changes related to Indian real estate investment trusts. In response, Kela argued that this felt more like an attack on India itself rather than a legitimate concern about an individual or group.
Looking forward, Kela assured investors that there is no need for concern and expects the markets to absorb this news quickly.
"Before releasing this report, they should have considered their own credibility. People took note of the first report, but nothing substantial came of it. The group in question has come out strong, even doing a $1 billion QIP recently with participation from top investors, including myself. I don’t think this will do any lasting damage, either to the group or the market at large," he added.
Regarding market performance, Kela acknowledged that it has surprised even seasoned bulls like himself and expects the strong domestic buying to continue.
"First of all, the markets have been incredibly resilient, even surprising optimists like me. We’ve seen elections, budgets, changes in capital gains, and foreign currency issues, yet the interest in equities remains strong. Equities are now a genuine asset class, not just a speculative play. The fact that Rs 23,000 crore is coming into mutual funds through SIPs gives me a lot of confidence," he added.
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