Hindenburg Research has responded sharply to recent statements by SEBI Chairperson Madhabi Puri Buch and her husband, Dhaval Buch, concerning allegations that surfaced on August 10, 2024. In a series of tweets on X (formerly Twitter), Hindenburg asserted that Madhabi Buch’s explanations included significant admissions and have raised critical new questions about her role and investments.
The Buchs had clarified that their investment in a fund, allegedly tied to offshore entities involved in the Adani money syphoning scandal, was made in 2015 when they were private citizens residing in Singapore, well before Madhabi Buch joined SEBI as a Whole Time Member in 2017. They further explained that their decision to invest was influenced by Anil Ahuja, the Chief Investment Officer and a childhood friend of Dhaval Buch, who had a reputable career in investment with institutions like Citibank and JP Morgan.
However, Hindenburg was quick to dismiss these explanations, claiming that Madhabi Buch’s admission to investing in what it termed an “obscure” Bermuda/Mauritius fund structure raises new concerns. The research firm pointed out that Ahuja, who managed the fund, was also an Adani Group director at the time, suggesting a potential conflict of interest.
Adding to the controversy, Hindenburg highlighted that SEBI, under Madhabi Buch’s leadership, has been investigating funds linked to the Adani Group, including the very fund Buch had invested in. This, according to Hindenburg, further complicates her role as SEBI Chairperson and casts doubt on her ability to impartially oversee investigations related to Adani.
Moreover, Hindenburg alleged that Madhabi Buch had continued to own a 99% stake in Agora Advisory Limited, an Indian consulting firm that remained active and generated significant revenue during her tenure as SEBI Chairperson. They also claimed that a Singaporean entity, Agora Partners Singapore, was entirely owned by Buch until March 2022, well into her term as SEBI Chairperson, before transferring ownership to her husband.
The research firm raised concerns about possible undisclosed business activities, citing whistleblower documents that allege Buch used her email to conduct business under her husband’s name while serving at SEBI. Hindenburg also accused Buch of ensuring that accounts with ties to Adani were registered solely in her husband’s name just weeks before her SEBI appointment.
Hindenburg called for a full, transparent investigation into these matters, urging Madhabi Buch to release a complete list of consulting clients and business engagements through both the Indian and Singaporean entities. The firm emphasised that such transparency is crucial given Buch’s official commitment to maintaining transparency in her role as SEBI Chairperson.
As the controversy unfolds, the integrity of SEBI’s leadership and its ability to regulate India’s financial markets without bias is under intense scrutiny.
