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BUSINESS EYE AUGUST 23, 2024 | The Indian Eye 34

Ruling party and All India Bar Assn call for probe

into Hindenburg as allegations spark a new row

Mauritian regulator said that Mauritius does not permit creation of shell companies and cannot be

described as a ‘Tax Haven’ as has been done by Hindenburg

OUR BUREAU
New Delhi
ust when the Adani-Hindenburg
saga was about to end with SEBI
Jinvestigating the 24th and final
case, US short seller Hindenburg has
published fresh allegations against
the market regulator’s chairperson
Madhabi Puri Buch and her husband
Dhaval Buch of investing in an off-
shore fund linked with Adani.
While the US short seller made
allegations in January 2023 against the
Adani group, now it has published al-
legations against the market regulator
for not acting against the conglomerate.
In its report on August 10, Hinden-
burg has expressed surprise at SEBI’s
“lack of interest and not investigating”
Adani’s alleged undisclosed web of
Mauritius and offshore shell entities.
In an important development,
the Financial Services Commission,
Mauritius on Tuesday issued a state-
ment on the latest allegations cited
in the US Short seller Hindenburg SEBI Chairperson Madhabi Puri Buch in Mumbai (ANI)
research report. In its statement the
Mauritian regulator said that Mauri- al best practices and has been rated as BI’s legal responsibility to ensure that tiate a 360-degree investigation into
tius does not permit creation of shell compliant with the standards of the the market runs smoothly,” the BJP the alleged international conspiracy
companies and cannot be described Organisation for Economic Co-oper- leader said while addressing a press behind the latest Hindenburg report.
as a ‘Tax Haven’ as has been done by ation and Development (“OECD”),” conference in the national capital. Dr. Adish C. Aggarwala, who is
Hindenburg. the statement added. “When SEBI issued a notice also the immediate past President of
The FSC is the integrated regula- The Mauritian regulator also against Hindenburg, after completing the Supreme Court Bar Association
tor for the non-banking financial ser- clarified that the fund ‘IPE Plus’ cited its entire inquiry in July, which was (SCBA) calls for a comprehensive
vices sector and global business. by the US short seller is not a licensee done under the supervision of the Su- investigation to address concerns
“FSC has taken cognizance of the of the FSC Mauritius. preme Court, then without giving any regarding the Hindenburg report’s
contents of the report published by Meanwhile, BJP MP Ravi Shan- answer in favour of its defence, they credibility and its potential impact.
Hindenburg Research on 10 August kar Prasad slammed the opposition’s have made this attack, a baseless at- Dr. Adish C. Aggarwala, who has
2024 wherein mention has been made attack on the US-based short seller tack,” he said. been Vice-Chairman of Bar Council
of ‘Mauritius-based shell entities and Hindenburg report and its allegations Earlier, LoP Rahul Gandhi, al- of India stated that the Hindenburg
Mauritius as a ‘tax haven’. The FSC against market regulator SEBI chair- leged on Sunday that there was a sig- report is part of an intentional effort
wishes to highlight that the legisla- person Madhabi Buch and said that nificant risk in the Indian stock market by India’s enemies to damage India’s
tive framework in Mauritius does not the Congress party and its allies have after the “integrity” of the Securities growing economy. Dr Aggarwala fur-
permit creation of shell companies. conspired together to usher in eco- and Exchange Board of India (SEBI) ther stated that India is experiencing
Mauritius has a robust framework for nomic anarchy and instability in India. was “gravely compromised” by the al- economic growth and stability, in
global business companies,” a state- “After being rebuffed by the peo- legations against its chairperson. contrast to its neighbouring countries,
ment from FSC Mauritius read. ple of India, the Congress party, its Now, All India Bar Association which are grappling with economic
“All global business companies allies and the toolkit gang have con- has sought a 360-degree probe into difficulties and civil unrest.
licensed by the FSC have to meet spired together to usher in economic the international conspiracy angle be- The Hindenburg report was re-
substance requirements on an ongo- anarchy and instability in India. Hin- hind the Hindenburg report. leased with malicious intent to dam-
ing basis as per section 71 of the Fi- denburg report is released on Saturday, While talking to mediapersons, age the Indian economy and the
nancial Services Act which is strictly there is uproar on Sunday so the cap- AIBA Chairman and Senior Advocate report was crafted to undermine con-
monitored by the FSC. Moreover, the ital market is destabilized on Monday. Dr Adish C. Aggarwala, Chairman of fidence in India’s financial system and
FSC wishes to highlight that Mauri- India is a safe, stable and promising the All India Bar Association (AIBA) harm its economic interests, stated
tius strictly complies with internation- market in the shares as well. It is SE- urged the Indian government to ini- AIBA Chairman.

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