Hindenburg's report accuses SEBI Chairperson Madhabi Puri Buch of conflict of interest and financial misconduct related to offshore funds.
Hindenburg Research is back in the spotlight again after a year and a half. But this time, the target isn't an industrialist or a company but SEBI Chairperson Madhabi Puri Buch. In a lengthy report, Hindenburg has made serious allegations against her and her husband, Dhaval Buch. They are accused of having a stake in an offshore fund, conflicts of interest, and opaque financial dealings
What are the key allegations?
Offshore Fund Stakes: Hindenburg claims that Madhabi Puri Buch and her husband Dhaval Buch have stakes in funds based in Bermuda and Mauritius. The report alleges that while serving as SEBI Chairperson from April 2017 to March 2022, Madhabi Puri Buch owned 100% of a Singapore-based offshore consulting firm called Agora Partners. After her appointment, she transferred ownership of the firm to her husband.
Conflict of Interest: The report accuses her of managing these offshore funds through her husband's name using private emails and alleges that this conflict of interest prevented her from taking action against Adani.
Benefits to Husband: Dhaval Buch is a senior advisor at Blackstone, and Hindenburg claims that Madhabi Buch made regulatory changes that benefited Blackstone, especially in Real Estate Investment Trusts (REITs) where Blackstone has significant investments.
Higher Income than Salary
The report questions why Madhabi Puri Buch's earnings are much higher than her official salary. It states that she holds a 99% stake in a consulting firm, Agora Advisory, which earned Rs 1.98 crore in FY 2022, 4.4 times her salary as a SEBI member.
Wealth Disclosure
According to media reports and a principal fund announcement by IIFL, Madhabi Puri Buch and her husband have total assets worth USD 10 million (around Rs 83 crores). SEBI's official website lists her gross salary as Rs 3,19,500.
Here's the full statement of the SEBI's chief in response to this:
In the context of allegations made in the Hindenburg Report dated August 10,2024 against us, we would like to state that we strongly deny the baseless allegations and insinuations made in the report. The same are devoid of any truth. Our life and finances are an open book. All disclosures as required have already been furnished to SEBI over the years. We have no hesitation in disclosing any and all financial documents, including those that relate to the period when we were strictly private citizens, to any and every authority that may seek them. Further, in the interest of complete transparency, we would be issuing a detailed statement in due course.
It is unfortunate that Hindenburg Research against whom SEBI has taken an Enforcement action and issued a show cause notice has chosen to attempt character assassination in response to the same.
Madhabi Puri Buch
Dhaval Buch
Hindenburg's report raises significant questions about the integrity and financial dealings of SEBI's top official, suggesting potential conflicts of interest and regulatory favoritism.
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 "SEBI Chairperson Madhabi Puri Buch")
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