August 12th 2024.
The Hindenburg Research has accused Madhabi Puri Buch, the chairperson of SEBI, of making investments in an obscure Bermuda/Mauritius fund structure. They have called for her to disclose all her consulting clients, both in offshore Singapore and India. In response, Buch and her husband issued a statement denying these allegations and calling them an attack on the credibility of SEBI.
However, Hindenburg has continued to make posts on X, stating that their response includes important admissions and raises new critical questions. They claim that Buch's statement has now confirmed her investment in the same fund structure that was allegedly used by Vinod Adani to siphon money. They also point out that the fund was run by a childhood friend of her husband, who was also a director at Adani at the time.
Hindenburg had previously accused Madhabi Puri Buch and her husband of undisclosed investments in offshore funds in Bermuda and Mauritius, which were allegedly used by Vinod Adani to inflate stock prices. In response, Buch and her husband stated that these investments were made in 2015, before her appointment as a whole-time member of SEBI in 2017. They also clarified that these funds became dormant upon her appointment to SEBI.
Hindenburg, however, believes this to be a conflict of interest as SEBI is currently investigating investment funds related to the Adani matter, including funds that Buch personally invested in. They also raise questions about Buch's consulting companies, which she claims became dormant upon her appointment to SEBI in 2017. Hindenburg states that per the latest shareholding list, one of these companies is still owned by Buch and is generating consulting revenue.
They also highlight that Buch's husband took over the companies in 2019, after her appointment as SEBI chairperson. They allege that Buch remained a 100% shareholder of another consulting company until March 2022, and only transferred her shares to her husband two weeks after her appointment.
Madhabi Puri Buch and her husband have denied these allegations, stating that they are devoid of any truth. SEBI has also come to Buch's defense, stating that she has made relevant disclosures and has recused herself in matters involving potential conflicts of interest.
Hindenburg, however, continues to question Buch's transparency, citing whistleblower documents that show she used her personal email for business while serving as a whole-time member of SEBI. They also ask if Buch's consulting clients include companies that SEBI is supposed to regulate.
They call for a full, transparent, and public investigation into these issues and ask if Buch will release the full list of consulting clients and details of their engagements. They also question whether Buch's husband's involvement in the consulting companies poses a conflict of interest.
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