SEBI Chief Madhabi Puri Buch, alongside her husband Dhaval Buch, has issued a comprehensive statement refuting Hindenburg allegations made by US-based short seller Hindenburg Research. The accusations claimed that SEBI Chief Madhabi Puri and her spouse were involved in investments with offshore entities allegedly used in the Adani money siphoning scandal. This response follows a previous statement by the Buch couple accusing Hindenburg of damaging their reputation.

SEBI Chief Madhabi Puri Addresses Hindenburg Allegations

In their statement, SEBI Chief Madhabi Puri and Dhaval Buch vehemently denied the allegations of involvement with obscure offshore entities. According to their response, Madhabi Puri, an alumna of IIM Ahmedabad with over 20 years of experience in the banking and financial services industry, and Dhaval Buch, an IIT Delhi alumnus with a 35-year career at Hindustan Unilever and Unilever globally, have accumulated their wealth through legitimate means. The statement emphasizes that any insinuations about their net worth, especially in relation to Madhabi’s government salary, are unfounded and malicious.

Hindenburg allegations
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The couple clarified that their investment in the fund referenced by Hindenburg was made in 2015, prior to Madhabi’s appointment with SEBI as a Whole Time Member. The investment decision was influenced by Dhaval’s longstanding relationship with Anil Ahuja, the Chief Investment Officer of the fund, who is a childhood friend and a seasoned investment professional. The statement also affirmed that the fund never invested in any Adani group company bonds, equities, or derivatives.

SEBI Chief Madhabi Puri’s Professional Background and Response

The statement also addressed Dhaval Buch’s role as a Senior Advisor to Blackstone Private Equity, which he joined in 2019 due to his expertise in Supply Chain management. This appointment, pre-dating Madhabi’s tenure as SEBI Chairperson, has been publicly known and was disclosed to SEBI. Dhaval’s work with Blackstone was unrelated to the Real Estate sector, and his appointment was promptly added to Madhabi’s recusal list at SEBI.

Furthermore, the Buch couple responded to concerns about consulting companies set up by Madhabi before her SEBI appointment. These companies, based in India and Singapore, became dormant upon her appointment with SEBI. Dhaval, after retiring from Unilever in 2019, used these companies for consultancy work. The couple clarified that all shareholdings and disclosures related to these companies were duly reported to SEBI, Singapore authorities, and Indian tax authorities.

Statement on Regulatory Conduct

The joint statement by SEBI Chief Madhabi Puri and Dhaval Buch also addressed claims regarding their adherence to SEBI’s regulations. They emphasized that SEBI maintains strict institutional mechanisms for disclosure and recusal, which they have followed diligently. The statement refutes suggestions that recent SEBI circulars, including those related to the REIT industry, were influenced by external parties.

The couple criticized Hindenburg Research for focusing on character assassination rather than addressing the show cause notice issued to them for various violations in India. The report by Hindenburg Research, which first surfaced on January 2023, alleged financial misconduct by the Adani Group, causing a significant drop in the company’s stock prices. However, the Adani Group denied these allegations.

In January 2024, the Supreme Court of India ordered SEBI to complete its investigation into the Adani case within three months, but declined to transfer the investigation to a Special Investigation Team (SIT). The Supreme Court also rejected a petition to revisit the decision on the Adani-Hindenburg matter, reaffirming SEBI’s role in handling the investigation.

The response from SEBI Chief Madhabi Puri and her husband Dhaval aims to address the serious allegations made by Hindenburg Research and clarify their stance on the matter. Their statement underscores their commitment to transparency and adherence to regulatory norms amidst the ongoing scrutiny and public discourse.

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