Hindenburg is trying to discredit Sebi's leader Buchs by questioning their credibility and attacking their character.

Mumbai: A controversial report released by US-based short-seller Hindenburg Research has caused a stir in the capital markets and raised questions about the credibility of the Securities and Exchange Board of India (Sebi). In response, Sebi chairperson Madhabi Puri Buch and her husband, Dhaval, have released a detailed statement addressing the allegations made against them.

The statement, issued Sunday evening, denies all claims made by Hindenburg and asserts that the report is an attempt to undermine the reputation of Sebi and Madhabi herself. The Buchs also clarify that their investments in offshore funds linked to the Adani Group were made two years before Madhabi joined Sebi as a whole-time member in 2017, and that they were acting as private citizens at the time.

The statement also addresses concerns raised about Dhaval's role as a senior advisor with Blackstone. The Buchs explain that Dhaval's expertise in supply chain management is the reason for his appointment, and that he has never been involved in the real estate side of the company. They also mention that Blackstone was added to Madhabi's "recusal list" upon Dhaval's appointment, as a precautionary measure.

In addition, the Buchs clarify that Madhabi's two consulting firms were rendered dormant upon her appointment at Sebi and that her shareholding in them was disclosed to the authorities. However, they also mention that Dhaval, after retiring from Unilever, started a consultancy practice through these same companies and worked for prominent clients in India. They stress that any insinuations about the earnings from these companies being linked to Madhabi's government salary are baseless and malicious.

The statement also addresses the Hindenburg report's allegations about Madhabi's ownership of Indian consulting business Agora Advisory, where Dhaval serves as a director. The Buchs clarify that when the shareholding of a Singapore entity was transferred to Dhaval, it was disclosed to Sebi, as well as the Singapore and Indian authorities. They also highlight that Sebi has strong institutional mechanisms in place for disclosure and recusal norms.

The statement ends with a reminder that Hindenburg has been served a show cause notice for violations in India, and that their decision to attack Sebi's credibility is unfortunate and can be seen as an attempt to assassinate Madhabi's character. The Buchs maintain that Sebi's decisions are taken by the board as a whole, and that any suggestions of favoritism towards certain parties in the Real Estate Investments Trusts industry are unfounded and malicious.

In conclusion, the Buchs stand by their integrity and the credibility of Sebi, and urge the public to not be swayed by baseless allegations and attempts to discredit the regulatory body. They hope that Hindenburg will respond to the show cause notice in a timely and appropriate manner.

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