Madhabi Puri Buch, the chairperson of the Securities and Exchange Board of India (SEBI), and her husband, Dhaval Buch, denied the allegations made by Hindenburg Research in its latest report. The report claimed that Madhabi and her husband had undisclosed investments in offshore funds linked to the Adani Group’s alleged financial misconduct.
According to the Buchs, the investments referred to in the report were made two years before Madhabi joined SEBI in any capacity, and they were private citizens living in Singapore at the time. The couple emphasized that the decision to invest in the IIFL Wealth Management Fund was based on a personal connection with the Chief Investment Officer, Anil Aujla, a childhood friend of Dhaval’s.
The Buchs also pointed out that Hindenburg Research has been served a show cause notice for various violations in India and expressed disappointment that the firm chose to attack the credibility of SEBI and engage in character assassination of its chairperson instead of responding to the notice.
Responding to Madhabi Buch’s explanation, Hindenburg raised further questions about her involvement with dealing with clients in India, who she is supposed to regulate in her professional capacity.
Meanwhile, SEBI clarified that Madhabi Puri Buch made “relevant disclosures” from time to time and recused herself in matters involving potential conflicts of interest. The regulatory body advised investors to remain calm and exercise due diligence before reacting to such reports.
The latest development follows another investigative report released by Hindenburg Research in January 2023, which alleged that the Adani Group had orchestrated the “largest con in corporate history” through stock manipulation and financial misconduct.