Hindenburg Research Claims Madhabi Puri Buch Withdrew Funds On Husband’s Name 2 Weeks After SEBI Appointment

Hindenburg Research has responded to accusations made by Madhabi Puri Buch, Chairperson of the Securities and Exchange Board of India (SEBI), regarding her alleged connections to offshore entities involved in the Adani money siphoning scandal. Hindenburg asserts that Buch had control over accounts linked to Adani, registered under her husband's name, and redeemed stakes in these funds through him.

SEBI defended Buch, stating she had made proper disclosures and recused herself from cases with potential conflicts of interest. Buch and her husband issued a statement denying the allegations, claiming their investment in the fund occurred before Buch joined SEBI. They emphasized that their investment was based on a personal relationship with the Chief Investment Officer and was redeemed when he left his position.

Hindenburg's Allegations

Hindenburg initially made these allegations on Twitter, suggesting that Buch and her husband held stakes in offshore funds used in the Adani money siphoning scandal. The firm also claimed that Buch remained a shareholder of Agora Partners Singapore until two weeks after becoming SEBI Chairperson. Additionally, Hindenburg alleged that Buch's consulting companies were active during her tenure at SEBI, generating revenue for an Indian entity while she served as Chairperson.

Hindenburg raised questions about Buch's business activities and investments through her husband's name while she was in an official capacity. The firm called for a thorough investigation and urged Buch to release a complete list of consulting clients and engagements.

SEBI's Response

SEBI stated it has completed 23 investigations into the Adani group, with one more nearing completion. The regulator has issued numerous summons, letters, and emails to gather information and sought assistance from both domestic and foreign regulators as well as external agencies.

Buch's involvement in Agora Partners Singapore until shortly after her appointment as SEBI Chairperson raises concerns about potential conflicts of interest. Hindenburg's claims about her consulting companies' activities during her tenure further complicate the situation.

Buch's Defence

Buch and her husband have consistently denied any wrongdoing. They stated their investment in the fund was based on a personal relationship with the Chief Investment Officer. They also clarified that they redeemed their investment when he left his position.

The ongoing scrutiny from Hindenburg Research highlights the need for transparency in regulatory positions. As SEBI continues its investigations into the Adani group, questions about potential conflicts of interest remain critical.

The allegations against Madhabi Puri Buch underscore the importance of maintaining integrity within regulatory bodies. Ensuring transparency and accountability is essential for public trust in financial oversight institutions like SEBI.