Securities and Exchange Board of India (Sebi) Chairperson Madhabi Puri Buch and her husband, Dhaval Buch, strongly denied Hindenburg Research’s allegations that she held stakes in offshore entities tied to Adani group companies.
Addressing the allegations, the Buchs clarified that their 2015 investment in offshore entities, cited in Hindenburg’s August 10 report, happened while they were private citizens in Singapore, two years before Madhabi’s appointment as a SEBI director. They said the investment decision was influenced by Anil Ahuja, a childhood friend of Dhaval and a veteran of Citibank, J.P. Morgan, and 3i Group Plc. They said the investment was redeemed in 2018 when Ahuja left the fund and never involved Adani group securities.
The statement also said that Dhaval Buch’s 2019 appointment as Senior Advisor to Blackstone, before Madhabi was named the SEBI Chairperson, was based on his supply chain management expertise, and he has no involvement with Blackstone’s real estate business. Their statement added that SEBI had issued over 300 circulars in the past two years, with regulations approved by its board after public consultation, and dismissed any accusations of favouritism as baseless and malicious.
It further stated that Madhabi’s consulting companies from Singapore became dormant upon her SEBI appointment and were disclosed as part of her SEBI disclosures.
The Buchs criticised Hindenburg Research’s deliberate effort to undermine SEBI and its Chairperson and accused the short seller of engaging in character assassination and failing to address a show cause notice issued to them.
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Summary of the statement issued by Madhabi Puri Buch and Dhaval Buch:
- Investment decision: The Buchs invested in IPE-Plus Fund 1, cited in the Hindenburg report, in 2015 when they were private citizens living in Singapore and based on their friendship with Anil Ahuja and his career in banks and investment firms. They exited the investment in 2018 when Ahuja left his position as chief investment officer. The fund never invested in any Adani group securities.2. Professional background: Dhaval’s appointment as Senior Advisor to Blackstone in 2019, which predated Madhabi being named SEBI Chairperson, was due to his expertise in supply chain management. Any potential conflicts were addressed by adding Blackstone to Madhabi’s recusal list at SEBI.
4. Compliance: All disclosures regarding the couple’s investments and business activities, including shareholdings and company statuses, have been transparently reported to SEBI, Singapore authorities, and Indian tax authorities.
5. Consulting firms: Two consulting companies set up by Madhabi during her stay in Singapore became dormant upon her appointment at SEBI. These companies and her shareholding in them were disclosed to SEBI.
6. Character assassination: Hindenburg has served a show cause notice for violations in India. Regrettably, rather than responding, they have opted to undermine SEBI’s credibility and engage in character assassination of the SEBI Chairperson.
Hindenburg alleges SEBI Chair Madhabi Buch had stake in offshore entities connected to Adani
On August 10, Hindenburg Research -- the short seller behind the 2023 report on Adani group -- in a fresh note alleged SEBI chair Madhabi Puri Buch had a stake in offshore entities linked to the Adani case. The report claimed these funds, based in Bermuda and Mauritius, were allegedly controlled by Vinod Adani, Gautam Adani’s elder brother, and were used to manipulate funds and inflate stock prices.
Also Read: Adani Group denounces Hindenburg allegations as 'baseless,' stands firm on transparency
Hindenburg’s report suggested that Adani's confidence in operating without serious regulatory intervention might be linked to an alleged relationship with SEBI Chairperson Madhabi Buch.
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