The Association of Mutual Funds in India (AMFI) has voiced its support for SEBI Chief Madhabi Puri Buch, rejecting claims from the recent Hindenburg report that aim to “create a trust deficit in the market ecosystem.” The report, issued by US short-seller Hindenburg Research, alleged that SEBI’s perceived inaction against the Adani Group could be connected to Buch’s investments in offshore funds associated with the conglomerate.

In its statement, AMFI emphasized that such comments attempt to undermine Buch’s contributions to India’s capital markets and could damage the country’s economic progress by fostering distrust. The association stressed that these remarks, which lack a nuanced understanding of India’s regulatory framework, could malign the nation’s achievements and impede its advancement toward becoming a developed economy.

AMFI reassured both domestic and international investors and partners of the integrity and robustness of India’s financial system, highlighting its commitment to transparency, growth, and innovation. The organization urged stakeholders to remain confident and continue supporting India’s growth trajectory.

SEBI Chairperson Madhabi Puri Buch has dismissed the Hindenburg claims as “baseless” and an effort at “character assassination.” Buch is expected to provide a detailed response to these allegations.

The Hindenburg report claimed that Buch and her husband had undisclosed investments in a Bermuda-based Global Opportunities Fund linked to the Adani Group. This fund was allegedly used by Vinod Adani to manipulate stock prices. The investments reportedly predated Buch’s appointment as a SEBI whole-time member in 2017 and her subsequent elevation to chairperson in 2022.