Shares of Adani Group companies plunged on Monday after U.S. short-seller Hindenburg Research released another scathing report against the conglomerate.

What Happened: The research firm alleged that Madhabi Buch, chairperson of the Securities and Exchange Board of India (SEBI), held stakes in offshore entities involved in the Adani money siphoning scandal.

Hindenburg alleged that Madhabi Buch and her husband, Dhaval Buch, had hidden stakes in the same offshore funds utilised by Vinod Adani, the brother of Gautam Adani. The report implies that SEBI’s inaction against the Adani Group, despite evidence of fraudulent activities, might be linked to the Buchs’ involvement with these funds.

The Adani Group has strongly denied the allegations describing them as "malicious" and "manipulative". The company in a statement dismissed the allegations as a "recycling of discredited claims" that had been thoroughly investigated and proven baseless by the Supreme Court in March 2023.

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The SEBI chief, on her part, also issued a clarification accusing the short seller of character assassination. The statement gave a lengthy account of the Buchs' career.

The Buchs explained that their decision to invest in the IPE Plus Fund 1 — which Hindenburg alleges has links to the Adani Group — was influenced by the involvement of Anil Ahuja, the chief investment officer, who was a childhood friend of Dhaval Buch. It added that all necessary disclosures were made in accordance with SEBI's rules.

After the issuance of this clarification, Hindenburg has doubled down on its allegations. In a thread posted on social media platform X, the company said that the response included several important admissions that raise new questions. 

Price Action: Most Adani firms' stocks were trading in the red on Monday.

Shares of Adani Enterprises were down 3.12% at ₹3,088.05.
Shares of Adani Energy Solutions were down 4.12% at ₹1,058.35.
Shares of Adani Power were down 7.53% at ₹643.05.
Shares of Adani Ports were down 3.81% at ₹1,475.30.
Shares of Adani Total Gas were down 6.97% at ₹809.20.
Shares of Adani Wilmar were down 4.60% at ₹367.45.
Shares of NDTV were down 3.05% at ₹201.98.
Shares of Adani Green Energy were up 3.85% at ₹1,712.30.
Shares of ACC were also up 1.90% at ₹2,306.95.
Shares of Ambuja Cement were up 1.44% at ₹622.90.

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