Hindenburg Claps Back At Sebi Chief Madhabi Buch's Retort: 'Her Response Confirms...'

Hindenburg Research has raised significant questions regarding SEBI Chairperson Madhabi Buch's response to allegations against the Adani Group.

Hindenburg accused Buch and SEBI of not adequately investigating the allegations due to Buch's potential conflict of interest, stemming from her and her husband's investments in offshore funds linked to the Adani Group.

Photo Credit: PTI

In a series of posts on X, Hindenburg claimed that Buch admitted to her investment in a Bermuda/Mauritius fund structure alongside money allegedly siphoned by Vinod Adani.

This fund was run by a childhood friend of Dhaval Buch, Madhabi's husband, who was an Adani Group director at the time.

"SEBI Chairperson Madhabi Buch's response to our report includes several important admissions and raises numerous new critical questions. Buch's response now publicly confirms her investment in an obscure Bermuda/Mauritius fund structure, alongside money allegedly siphoned by Vinod Adani. She also confirmed the fund was run by a childhood friend of her husband, who at the time was an Adani director," Hindenburg stated.

Hindenburg also questioned whether Buch's consulting clients included those regulated by SEBI, adding that Buch's two consulting firms became dormant upon her SEBI appointment in 2017, with her husband taking over in 2019.

Despite this, Buch remained a 100% shareholder of Agora Partners Singapore until March 16, 2022, during her tenure as a SEBI Whole Time Member.

The research firm highlighted potential conflicts of interest and called for transparency, suggesting Buch's actions might have influenced SEBI's investigations. Hindenburg stated,

"This raises the question: What other investments or business has the SEBI chairperson engaged in through her husband's name while serving in an official capacity?"

In response, Madhabi Puri Buch and her husband Dhaval released a joint statement refuting the allegations.

They asserted that their investment in the IIFL Wealth Management-promoted fund was as private citizens and occurred two years before Madhabi joined SEBI.

They also clarified that Dhaval's association with Blackstone predates Madhabi's SEBI appointment and that Blackstone was added to Madhabi's recusal list upon Dhaval's appointment.

The Buchs defended Madhabi's consulting firms, stating they became dormant upon her SEBI appointment, and her shareholding was disclosed to SEBI.

Dhaval later used the firms for his consultancy practice post-retirement from Unilever. Linking consultancy earnings to Madhabi's government salary was deemed "malicious" by the Buchs.

Politically, the Congress and other INDIA bloc parties have called for Madhabi Buch's resignation and a joint parliamentary committee (JPC) probe into the allegations.

The BJP, however, accused the Opposition of attempting to create financial instability in India.