SEBI Chairperson Madhabi Puri Buch and Husband Deny Hindenburg Allegations
Mumbai (Maharashtra) [India], August 11: SEBI Chairperson Madhabi Puri Buch and her husband Dhaval Buch have issued a detailed statement rejecting allegations made by US-based short seller Hindenburg Research. Hindenburg had claimed that the couple had stakes in offshore entities involved in the Adani money siphoning scandal.
Background of Madhabi and Dhaval Buch
Madhabi Buch is an alumnus of IIM Ahmedabad with over two decades of experience in banking and financial services, primarily with the ICICI Group. She lived and worked in Singapore from 2011 to 2017. Dhaval Buch, an alumnus of IIT Delhi, has a 35-year career with Hindustan Unilever Limited and Unilever globally, living in London and Singapore from 2010 to 2019.
Investment Details
The couple clarified that their investment in the fund mentioned in the Hindenburg report was made in 2015 while they were private citizens in Singapore, two years before Madhabi joined SEBI. The investment was influenced by Anil Ahuja, a childhood friend of Dhaval and a seasoned investor. They redeemed their investment in 2018 when Ahuja left his position as Chief Investment Officer of the fund.
Dhaval Buch’s Role at Blackstone
Dhaval’s appointment as Senior Advisor to Blackstone Private Equity in 2019 was due to his expertise in Supply Chain management and predated Madhabi’s role as SEBI Chairperson. His role has been public knowledge, and Blackstone was added to Madhabi’s recusal list at SEBI.
Consulting Companies
Madhabi set up two consulting companies during her stay in Singapore, which became dormant upon her SEBI appointment. Dhaval continued consultancy through these companies after retiring from Unilever in 2019. All disclosures were made to SEBI, Singapore authorities, and Indian tax authorities.
Response to Hindenburg
The Buch couple emphasized that SEBI has strong disclosure and recusal norms, which they have diligently followed. They accused Hindenburg of attacking SEBI’s credibility instead of responding to a show cause notice for violations in India.
Hindenburg’s Allegations
Hindenburg had alleged that the Buch couple had hidden stakes in offshore funds used in the Adani scandal. The firm had previously accused the Adani Group of financial irregularities, leading to a significant drop in the company’s stock price. The Supreme Court has directed SEBI to complete its probe into the allegations within three months.
Doubts Revealed
SEBI -: SEBI stands for the Securities and Exchange Board of India. It is a government agency that regulates the stock market and protects investors in India.
Chairperson -: A Chairperson is the leader or head of an organization or committee. In this case, Madhabi Puri Buch is the head of SEBI.
Hindenburg Research -: Hindenburg Research is a company that investigates and reports on financial frauds and irregularities. They look into companies to see if they are doing anything wrong with their money.
Allegations -: Allegations are claims or accusations that someone has done something wrong. In this case, Hindenburg Research is accusing Madhabi Puri Buch and her husband of being involved in a financial scandal.
Offshore entities -: Offshore entities are companies or investments that are based in a different country, often for tax benefits or privacy. They are sometimes used to hide money or avoid taxes.
Adani money siphoning scandal -: The Adani money siphoning scandal refers to accusations that the Adani Group, a large Indian company, was illegally moving money to different places to hide it or avoid taxes.
Private citizens -: Private citizens are people who are not working for the government or holding a public office. They are just regular people living their lives.
Singapore -: Singapore is a small, wealthy country in Southeast Asia. Many people and businesses invest money there because of its strong economy and financial system.
Disclosures -: Disclosures are when people or companies share important information, usually about finances or investments, with authorities or the public. This is done to be transparent and honest.
Financial irregularities -: Financial irregularities are actions that are not normal or legal in managing money. This can include things like hiding money, lying about finances, or breaking financial rules.
