Ravi Shankar Prasad Condemns Opposition’s Reaction to Hindenburg Report

BJP MP Ravi Shankar Prasad criticized the opposition’s reaction to the Hindenburg report and its allegations against SEBI Chairperson Madhabi Buch, accusing the Congress party and its allies of conspiring to create economic instability in India. Speaking at a press conference in the national capital, Prasad said, “After being rejected by the people of India, the Congress, its allies, and the so-called ‘toolkit gang’ have conspired to bring about economic chaos in the country. The Hindenburg report is released on Saturday, causing an uproar on Sunday, which destabilizes the capital market on Monday. India has a safe, stable, and promising stock market, and it is SEBI’s legal duty to ensure its smooth functioning.”

Prasad noted that after SEBI completed its investigation in July, under Supreme Court supervision, and issued a notice against Hindenburg, the latter responded with baseless attacks without providing any defense.

He also criticized the opposition for continually trying to tarnish Prime Minister Narendra Modi’s image, saying, “We expected the opposition to show restraint, but they haven’t. They are relentlessly trying to damage PM Modi’s reputation. The Congress and its allies are behind this. Now, with the Hindenburg report, they are spreading falsehoods in society.”

On Sunday, Congress leader Rahul Gandhi claimed that the integrity of SEBI had been “gravely compromised” by the allegations against its chairperson, posing a significant risk to the Indian stock market. Gandhi questioned who would be held accountable if investors lost their money: PM Modi, SEBI Chairperson Madhabi Buch, or Gautam Adani.

Hindenburg’s report alleged that SEBI Chairperson Madhabi Buch and her husband had stakes in offshore funds linked to the Adani money siphoning scandal. In response, Buch and her husband issued a press release rejecting the allegations as baseless and malicious, describing them as an attempt at “character assassination.”

On August 10, Hindenburg published a report claiming, “We previously noted Adani’s confidence in operating without fear of regulatory action, possibly due to his relationship with SEBI Chairperson Madhabi Buch. What we hadn’t realized was that the current SEBI Chairperson and her husband, Dhaval Buch, held hidden stakes in the same offshore Bermuda and Mauritius funds used by Vinod Adani.”

In January 2023, Hindenburg released a report accusing the Adani Group of financial misconduct, which led to a significant drop in the group’s stock prices. Adani dismissed the claims as unfounded. The Supreme Court later cleared the Adani group, refusing to transfer the probe to an SIT and directing SEBI to complete its investigation within three months. In June 2024, the Supreme Court also dismissed a plea seeking to review its earlier verdict in the Adani-Hindenburg case.