Hindenburg Research alleges SEBI chair Madhabi Puri Buch had stake in obscure offshore entities used in Adani scandal

"What we hadn’t realized: the current SEBI Chairperson and her husband, Dhaval Buch, had hidden stakes in the exact same obscure offshore Bermuda and Mauritius funds, found in the same complex nested structure, used by Vinod Adani," the report added.

"Madhabi Buch and her husband Dhaval Buch first appear to have opened their account with IPE Plus Fund 1 on June 5th, 2015 in Singapore, per whistleblower documents. A declaration of funds, signed by a principal at IIFL states that the source of the investment is 'salary' and the couple´s net worth is estimated at $10 million," it further stated.

Hindenburg Research alleged citing documents it received from a whistleblower that in 2017, just weeks before Madhabi Buch’s appointment, her husband Dhaval Buch wrote to Mauritius-bases fund administrator Trident Trust, requesting to “be the sole person authorised to operate the Accounts” with his Madhabi Puri Buch’s investment in the Global Dynamic Opportunities Fund (GDOF).

"On March 22nd, 2017, just weeks ahead of that politically sensitive appointment, Madhabi’s husband, Dhaval Buch, wrote to Mauritius fund administrator Trident Trust, according to documents we received from a whistleblower. The email was regarding his and his wife’s investment in the Global Dynamic Opportunities Fund (“GDOF”). In the letter, Dhaval Buch requested to “be the sole person authorised to operate the Accounts”, seemingly moving the assets out of his wife’s name ahead of the politically sensitive appointment," Hindenburg report stated in its report.

"In a later account statement dated February 26th, 2018, addressed to Madhabi Buch’s private email, the full details of the structure are revealed: “GDOF Cell 90 (IPEplus Fund 1)”. Again, this is the exact same Mauritius-registered “cell” of the fund, found several layers deep in a convoluted structure, reportedly used by Vinod Adani. The total value of Buch’s stake was worth U.S. $872,762.25 at the time," the report further stated.

The Hindenburg Research also said, "Later, on February 25th, 2018, during Buch’s tenure as a Whole-Time Member of SEBI, whistleblower documents show she personally wrote to India Infoline using her private Gmail account, doing business through her husband’s name, to redeem the units in the fund."

It said, "We suspect SEBI’s unwillingness to take meaningful action against suspect offshore shareholders in the Adani Group may stem from Chairperson Madhabi Buch’s complicity in using the exact same funds used by Vinod Adani, brother of Gautam Adani."

The report also said, "From April 2017 To March 2022, While Madhabi Buch Was A Whole Time Member And Chairperson At SEBI, She Had A 100% Interest In An Offshore Singaporean Consulting Firm, Called Agora Partners," adding, "On March 16th, 2022, Two Weeks After Her Appointment As SEBI Chairperson, She Quietly Transferred The Shares To Her Husband."

In January 2023, Hindenburg Research accused the Adani Group of orchestrating "the largest con in corporate history". The report alleged that the conglomerate used a network of offshore companies to inflate revenue and manipulate stock prices while accumulating massive debt. Despite the Adani Group's strong denials, the report caused a dramatic plunge in the group's share values, erasing over USD 150 billion in market value from its 10 listed entities at their lowest point.

Most of the listed companies have since recouped the losses.

Following the Hindenburg report, the Supreme Court directed the market regulator Sebi to finalise its investigation and establish a separate expert panel to examine regulatory lapses. The expert panel did not issue any negative findings about Adani, and the Supreme Court also concluded that no additional investigations beyond Sebi's were necessary.