In a recent series of tweets on X (formerly Twitter), Hindenburg Research has challenged the statements made by SEBI Chairperson Madhabi Puri Buch and her husband, Dhaval Buch, regarding the allegations raised by Hindenburg on August 10, 2024. The Buchs had previously addressed the accusations by clarifying their investment in a fund, which they claimed was made in 2015, prior to Madhabi Buch’s tenure at SEBI. The Buchs stated that their investment was influenced by Anil Ahuja, the Chief Investment Officer of the fund, who was a childhood friend of Dhaval Buch and had a significant career background in investment.
According to the Buchs, the fund in question did not invest in any bonds, equities, or derivatives of Adani Group companies, a claim reportedly confirmed by Ahuja. However, Hindenburg Research has sharply criticized this explanation, arguing that it raises more questions than it answers.
Hindenburg’s response highlights several key concerns. Firstly, the research firm points out that Madhabi Buch’s investment in an “obscure” Bermuda/Mauritius fund structure, allegedly connected to funds linked to Vinod Adani, was publicly confirmed in her response. Hindenburg underscores that the fund was managed by Ahuja, who was also an Adani director at the time—a detail that could suggest a potential conflict of interest.
The research firm also emphasizes that SEBI, under Buch’s leadership, has been tasked with investigating funds connected to the Adani Group, which could include those in which Buch herself was invested. This overlap raises questions about possible conflicts of interest and the integrity of SEBI’s investigations.
Furthermore, Hindenburg challenges Madhabi Buch’s statement regarding the status of her consulting businesses. Buch had claimed that her two consulting companies—one in India and the other in Singapore—became dormant immediately after her SEBI appointment in 2017. However, according to Hindenburg, her husband took over the businesses in 2019, and Madhabi Buch still owns 99% of the Indian entity, Agora Advisory Limited, which has reportedly been generating consulting revenue.
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Hindenburg’s tweets reveal that Agora Advisory Limited generated approximately INR 23.985 million (around USD 312,000) in revenue during the financial years 2022, 2023, and 2024, while Madhabi Buch was serving as SEBI Chairperson. This raises concerns about undisclosed business activities, especially since whistleblower documents suggest that Buch may have used her personal email to conduct business under her husband’s name during her tenure at SEBI.
Adding to the controversy, Hindenburg claims that weeks before her appointment as a SEBI Whole Time Member in 2017, Madhabi Buch ensured that accounts connected to Adani were registered solely in her husband’s name. The research firm also cites an alleged private email from Buch a year into her SEBI term, showing that she redeemed stakes in the funds through her husband’s name.
Hindenburg Research questions what other investments or business dealings Buch might have conducted through her husband while in her official capacity. The firm has called on Buch to release a comprehensive list of consulting clients and details of engagements through both her Singaporean and Indian consulting firms, as well as any other entities she or her husband might be involved in. Hindenburg also demands a full, transparent, and public investigation into these issues, citing Buch’s earlier promise of a “commitment to complete transparency.”
The ongoing dispute between Hindenburg Research and SEBI Chairperson Madhabi Puri Buch underscores the complexities and controversies surrounding high-profile financial and regulatory positions. The calls for transparency and accountability continue as the public and stakeholders seek clarity on the matter.
