Post-SEBI appointment, Madhabi’s firms dormant, Dhaval’s consulting drives accruals

Madhabi Puri Buch, Chaiperson, SEBI

Two consulting companies established by SEBI Chairperson Madhabi Puri Buch during her tenure in Singapore - one in India and one in Singapore - were made dormant following her appointment to SEBI, according to a joint press statement issued by Madhabi and Dhaval Buch. "These companies (and her shareholding in them) were explicitly part of her disclosures to SEBI." The statement was issued after Hindenburg Research alleged that Madhabi Buch and her husband had a stake in the obscure offshore entities used in the alleged Adani money siphoning scandal.

Dhaval Buch worked for Unilever in London and Singapore from 2010 to 2019. Madhabi Puri Buch resided and worked in Singapore from 2011 to March 2017, initially with a private equity firm and later as a consultant. The investment highlighted in the Hindenburg report was made in 2015, while both were private citizens in Singapore, nearly two years before Madhabi joined SEBI as a Whole-Time Member.

Also Read | Hindenburg alleges SEBI chair Madhabi Buch’s consulting firm earned many times more money than her salary

The press statement clarified that following Dhaval Buch's retirement from Unilever in 2019, he launched his own consultancy practice using these entities. "Dhaval's deep expertise in Supply Chain allowed him to work with prominent clients in the Indian industry. Thus, linking accruals in these companies to Madhabi's current government salary is malicious."

The transition of shareholding in the Singapore-based entity to Dhaval Buch was reported to SEBI, as well as to Singaporean and Indian tax authorities. "SEBI has strong institutional mechanisms of disclosure and recusal norms as per the code of conduct applicable to its officers. Accordingly, all disclosures and recusals have been diligently followed, including disclosures of all securities held or subsequently transferred."

According to Hindenburg Research's allegations, Madhabi Buch holds a 99 percent equity stake in Agora Advisory, an Indian consulting firm, which reportedly earned approximately Rs 19.8 million (USD 261,000) in the financial year 2022 - significantly more than her disclosed salary as a SEBI Whole-Time Member. Agora Advisory Pvt Ltd was set up in India on 7 May, 2013.

Also Read | Hindenburg Research alleges SEBI chair Buch had stake in obscure offshore entities used in Adani scandal

Hindenburg's note brought attention to Madhabi Buch's past ownership of Agora Partners, a consulting firm registered in Singapore on March 27, 2013. According to the report, Madhabi Buch was the sole owner of Agora Partners until March 16, 2022, just two weeks after her appointment as SEBI Chairperson, when she transferred ownership to her husband. The Hindenburg report suggested that this transfer was made to avoid potential conflicts of interest.

Agora Partners, registered as a business and management consultancy, is exempt from disclosing financial statements, which complicates the assessment of its revenue and financial activities. Hindenburg's report points out that while the Singapore entity remains opaque, there is more transparency regarding the Indian consulting firm, Agora Advisory.

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