Hindenburg reacts to SEBI chief Madhabi Puri Buch’s statement, raises new questions
SEBI: On X (previously Twitter), Hindenburg Research counted claims made by SEBI’s leader, Madhabi Puri Buch, and her spouse, Dhaval Buch on August 10, 2024. These were in response to allegations Hindenburg had made. Dhaval Buch had discussed his 2015 investment—made while a private citizen in Singapore—in a certain fund. Madhabi Buch joined SEBI as a full-time member two years later. They clarified that the investment decision hinged on the fund’s Chief Investment Officer being Anil Ahuja, Dhaval’s old friend and a reputable investor with experience at Citibank, JPMorgan Chase, and 3i Group Plc. Ahuja confirmed that the fund hadn’t invested in any Adani Group-related bonds, equities, or derivatives.
Hindenburg contested this account. Hindenburg asserted that Madhabi Buch’s response included significant admissions and raised new, serious questions about their investment in a fund associated with Vinod Adani. Hindenburg suggested that the management of this fund by Dhaval’s childhood friend, an Adani director at the time, could imply a conflict of interest.
Fund case related to Adani Group
Sebi is supposed to scrutinize funds connected to the Adani Group, which might include funds Dhaval Buch had invested in. Hindenburg considered this another potential conflict of interest. Further, according to Hindenburg, Madhabi Buch argued that two consulting firms she founded became inactive after she joined SEBI in 2017. However, her husband took the reins in 2019. Hindenburg stated she still owned 99% of the Indian firm, Agora Advisory Ltd., which was ongoing and generating consulting revenues. Madhabi Buch had owned Agora Partners Singapore in full until March 16, 2022, during her full-time SEBI membership, before she transferred ownership to her husband once he became SEBI chairman.
Hindenburg also mentioned Agora Advisory Ltd’s revenue of Rs 23.985 million (roughly US$312,000) in fiscal years 2022-2024, while Madhabi Buch was SEBI’s chairperson. The firm underscored potential undisclosed business activities, referring to whistleblower information that accused Madhabi Buch of using her personal email for trading under her husband’s name during her time at SEBI.
SEE THIS POST:
https://x.com/HindenburgRes/status/1822691406986834323
https://x.com/HindenburgRes/status/1822691400800194743
Just weeks before becoming a full-time SEBI member in 2017, Hindenburg continued the bitter allegations, claiming that Madhabi Buch had made sure to register Adani-related accounts only in her husband’s name. Hindenburg also cited an email from Buch sent a year into the SEBI term, showing her liquidating stakes in the fund under her husband’s name.
Hindenburg voiced questions over what other investments or business deals the SEBI chairperson might have made via her husband while in office. The research firm called on Buch to share a complete list of advisory clients, investment information from Singapore and Indian consulting firms, and any other entities she or her spouse may have ties with. In light of Buch’s vow of thoroughness, transparency, and “dedication to total transparency,” the firm opted to investigate these issues publicly.
