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Here’s What Nobody Told You About the CA Journey
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💥📍Important #GST updates of this week
📌 Using CGST/SGST instead of IGST without any actual loss of revenue is allowed
✔️Kerala HC - Kalleppuram Metals Vs Union of India
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Okay, I read the entire Hindenburg report.
Let me summarise it for you so that you don't have to go through the hassle.
• Are SEBI and Adani involved together?
• Is Madhabi Buch corrupted?
I will try to address how will this affect Indian markets to the best of my ability.
Adani and Hindenburg's saga has taken an interesting turn now as the SEBI chairman is now in question, so this becomes a question of the integrity of the regulatory body rather than the mischievous acts of a company,
What NEW has Hindenburg brought to Light?
• They were surprised by SEBI's inaction against the Adani group despite having ample proof and became suspicious of why the SEBI didn't investigate the matter. Adani was operating with confidence despite having some damning evidence against his companies and Hindenburg says this is because of the relationship between Adani and SEBI chairperson Madhabi Buch. (A very serious allegation)
• Hindenburg has backed these allegations with the transactions that happened with Dhaval Buch and their family's offshore accounts. A declaration made by the Buch couple says they're worth a whopping $10 Million and they have managed to amass this net worth just by salary. (Mind you this declaration is back from 2015)
• When Madhabi Buch took SEBI's top job in 2022, her husband asked their fund managers from Mauritius fund administrator Trident Trust (the same trust used by Vinod Adani for his shady transactions) regarding their investment in GDFO (Global Dynamic Opportunities Fund) to keep him as the sole operator of these accounts because it might raise questions if SEBI's chair has a vested interest in listed players BUT it is revealed that Madhabi Buch has been actually handling the accounts under her husband's name using her private Gmail to redeem funds from her supposed husband's account. Very obvious that if SEBI had investigated the Adani matter, would've been discovered easily.
• When Madhabi Buch was at SEBI's top job, her husband got a job at Blackstone and he had no background in private equity, real estate or capital markets (very odd considering Blackstone is a pure market player) and while he was at Blackstone they backed Mindspace and Nexus Select Trust for an IPO with SEBIs blessings, after these IPOs, SEBI also proposed sweeping regulations which benefited REITs and which in turn benefited Blackstone. Madhabi Buch has also mentioned REITs being her favourite asset class in public conferences.
Opinion🟥🟥
This doesn't look good.
A SEBI chair being "not clear" about her financial standings and investments, and trying to mask it with her husband's name doesn't look good. There doesn't seem to be anything illegal here but it is all about optics, if a major person from a regulatory body has things to hide, the institutions shouldn't expect retailers/people to believe in the system and its intentions.
It also cannot be proven that there is a direct connection between Madhabi Buch and Adani except the trust but there could be motivation for hesitation to investigate the Adani matter because she doesn't wanna be seen in the same frame as Adani regarding this matter.
In the end, it is a matter of optics, while clearly there haven't been any links to corruption, it also doesn't give the SEBI chair to be a clean slate person.
And if we talk about the effects on the Indian stock market, I see no effect. SEBI doesn't determine the earnings of a company nor the growth prospects, both of those are wonderful for Indian markets, the places where valuations are high might take a hit but there are no problems with fundamentals.
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Never watched big boss: 20 Points
Not a Elvish fan: 20 Points
Never made TikTok: 20 Points
Never made reels: 20 Points
Never supported RCB: 20 Points
Mine: 80/100
Yours ?
I liked this chart from @DuggadGautam. He explains markets have been growing in line with earnings. Hence there is no need to be alarmed with market heights. This data based perspective is reassuring.
Many CA's feel nirmala ji should be removed as a finance minister.
I feel Modiji might continue with her.
As, he is concerned about tax collections and not issued faced by chartered accountants.
I hadn't imagined a day would come when an American President would issue a statement that an order placed by an Indian company would lead to "one million American jobs over 44 states..."