Hindenburg Raises New Questions for SEBI Chairperson Madhabi Puri Buch
New Delhi, India – August 12: Following statements by Madhabi Puri Buch and her husband Dhaval Buch regarding allegations from Hindenburg Research, the US short seller has posed new questions for the SEBI Chairperson. Hindenburg claims that Buch’s response contained significant admissions and raised critical new questions.
In a social media post, Hindenburg stated, “SEBI Chairperson Madhabi Buch’s response to our report includes several important admissions and raises numerous new critical questions.” The post further mentioned that Buch’s response confirms her investment in a Bermuda/Mauritius fund structure, alongside money allegedly siphoned by Vinod Adani.
Hindenburg alleged a conflict of interest, stating, “SEBI was tasked with investigating investment funds relating to the Adani matter, which would include funds Ms. Buch was personally invested in and funds by the same sponsor highlighted in our original report.” The short seller also raised concerns about the financial statements of Buch’s Singapore consulting entities during her tenure at SEBI.
Hindenburg claimed that Buch’s Singaporean consulting entity does not publicly report its financials, making it impossible to see its earnings during her time at SEBI. They also noted that her Indian entity, still 99% owned by her, generated Rs 23.985 million in revenue during the financial years 2022, 2023, and 2024.
Additionally, Hindenburg alleged that whistleblower documents revealed Buch used her personal email for business under her husband’s name while serving as a whole-time member of SEBI. In 2017, weeks before her appointment, she ensured accounts tied to Adani were registered solely in her husband’s name.
Earlier, Buch and her husband stated that their investment in the fund mentioned in the Hindenburg report was made before she joined SEBI. They explained that the investment was made in 2015 when they were private citizens in Singapore, and the decision was influenced by the Chief Investment Officer, Anil Ahuja, a childhood friend of Dhaval Buch.
The statement added, “When Ahuja left his position as CIO of the fund in 2018, we redeemed the investment.” Anil Ahuja confirmed that the fund never invested in any Adani group company.
In January 2023, Hindenburg published a report accusing the Adani Group of financial irregularities, leading to a significant drop in the company’s stock price. The Adani Group denied these claims. In January 2024, the Supreme Court refused to transfer the probe into the allegations to an SIT and directed SEBI to complete its investigation within three months. The SC also dismissed a plea seeking to review the verdict for an investigation by SEBI in the Adani-Hindenburg case.
Doubts Revealed
Hindenburg Research -: Hindenburg Research is a company that investigates and reports on financial frauds and irregularities. They look into companies and people to see if they are doing anything wrong with money.
SEBI -: SEBI stands for Securities and Exchange Board of India. It is a government organization that regulates the stock market and protects investors in India.
Chairperson -: A Chairperson is the leader or head of an organization or a committee. In this case, Madhabi Puri Buch is the head of SEBI.
Madhabi Puri Buch -: Madhabi Puri Buch is the current Chairperson of SEBI. She is responsible for overseeing the stock market and making sure everything is fair and legal.
Bermuda/Mauritius fund -: A Bermuda/Mauritius fund is an investment fund based in the countries of Bermuda or Mauritius. These places are known for having special tax rules that can be beneficial for investors.
conflicts of interest -: Conflicts of interest happen when someone has to make a decision but has personal interests that could affect their judgment. For example, if someone in SEBI has investments that could be influenced by their decisions, it could be a conflict of interest.
consulting entities -: Consulting entities are companies or groups that provide expert advice to other businesses or organizations. They help with things like financial planning, management, and strategy.
financial transparency -: Financial transparency means being open and clear about financial activities. It involves showing where money comes from and how it is spent, so there are no hidden secrets.
