US short-seller Hindenburg Research has raised concerns about a possible conflict of interest involving Madhabi Puri Buch, the Chairperson of India's market regulator, SEBI (Securities and Exchange Board of India). In a series of tweets, Hindenburg responded to SEBI's statement regarding an investigation into the Adani Group.
Hindenburg claims that SEBI was responsible for investigating certain investment funds related to the Adani Group. However, they allege that these funds also included investments from SEBI Chairperson Buch, which could create a conflict of interest.
Specifically, Hindenburg claims that Agora Advisory Limited, an Indian company, is still 99% owned by Buch, despite her statement that it is owned by her husband. They also allege that Buch was the sole shareholder of Agora Partners Singapore until March 2022, holding shares even during her time as a SEBI whole-time member. The shares were transferred to her husband, Dhaval Buch, just two weeks after she became SEBI Chairperson.
Madhabi Puri Buch joined SEBI as a whole-time member in 2017 and was appointed Chairperson in 2022. Hindenburg suggests that her husband, Dhaval Buch, may have used these consulting firms to work with unnamed clients in the Indian industry since 2019. They question whether any of these clients are entities that SEBI is supposed to regulate.
Hindenburg also accused Buch and her husband of holding undisclosed investments in offshore funds located in Bermuda and Mauritius. These funds are reportedly linked to Vinod Adani, the elder brother of Adani Group Chairman Gautam Adani, and have been allegedly used for questionable financial activities.
