Manashimaya
In an unfolding saga that has captured the attention of investors and regulators alike, Hindenburg Research has responded to SEBI Chief Madhabi Puri Buch’s recent statement, raising significant new questions. This development follows the accusations made by Hindenburg on 10 August 2024, concerning potential conflicts of interest and undisclosed business activities linked to Buch.
Background on the Allegations
Financial relationships that potentially compromise Madhabi Puri Buch’s ability to perform her regulatory duties have been leveled against the Securities and Exchange Board of India (SEBI) chairperson. The organization known for its investigative research, Hindenburg Research, made this accusation. Buch responded by releasing a statement with her husband, Dhaval Buch, highlighting that they had invested in a fund in 2015—many months before Madhabi Buch’s SEBI affiliation began in 2017. The two said that Anil Ahuja, a seasoned investor, and Dhaval Buch’s childhood friend who was the fund’s chief investment officer, had a big influence on their decision to invest. They said that no Adani Group businesses received the funds.
Hindenburg’s Counter-Response
However, Hindenburg responded swiftly, pointing out that SEBI Chief Madhabi Puri Buch’s statement contained several significant admissions and raised critical new questions. One of the key revelations, according to Hindenburg, is Buch’s public confirmation of her investment in what the firm describes as an ‘obscure’ Bermuda/Mauritius fund structure. This structure is allegedly linked to funds reportedly siphoned by Vinod Adani, raising eyebrows about potential conflicts of interest given SEBI’s ongoing investigations into the Adani Group.
Hindenburg also highlighted a potential conflict of interest, given that the fund was managed by Dhaval Buch’s childhood friend, who was an Adani director at the time. This connection, according to Hindenburg, could undermine the impartiality expected from the SEBI Chairperson in matters related to the Adani Group.
Consulting Firms and Potential Conflicts
Another layer of complexity was added when Hindenburg pointed out discrepancies in Buch’s claims regarding the consulting firms she established. Madhabi Puri Buch asserted that her consulting companies, one in India and another in Singapore, became dormant after her SEBI appointment in 2017. However, Hindenburg’s investigation revealed that her husband took over these businesses in 2019, and that Buch herself retained a 99% stake in the Indian entity, Agora Advisory Limited, which has remained active and generating revenue. Notably, the firm generated INR 23.985 million in consulting revenue between 2022 and 2024, while Buch was serving as SEBI Chairperson.
This revelation raises questions about potential undisclosed business activities and conflicts of interest. Hindenburg alleges that Buch used her email to conduct business under her husband’s name during her SEBI tenure, further complicating the narrative.
Calls for Transparency
Adding fuel to the fire, Hindenburg claimed that just weeks before her SEBI appointment, Buch ensured that accounts with ties to Adani were registered solely in her husband’s name. The firm referenced a private email from Buch a year into her SEBI term, which allegedly shows her redeeming stakes in funds through her husband’s name. These allegations have led Hindenburg to question what other investments or business dealings Buch might have conducted through her husband while serving in her official capacity.
Conclusion
In light of these revelations, Hindenburg has called for a full, transparent, and public investigation into SEBI Chief Madhabi Puri Buch’s financial dealings. They have urged her to release a complete list of consulting clients and details of engagements through both her Indian and Singaporean firms, as well as any other entities she or her husband might be involved in. As the situation unfolds, the need for clarity and transparency is more pressing than ever, as Hindenburg responds to SEBI Chief Madhabi Puri Buch’s statement and raises new questions that demand answers.
