Hindenburg Report Sparks Controversy Over SEBI Chairperson Madhabi Puri Buch’s Alleged Offshore Investments Linked to Adani Entities

Report by Hindenburg Research alleges SEBI Chairperson Madhabi Puri Buch and her husband’s offshore investments in Adani-linked funds, igniting debate on conflict of interest and regulatory integrity.

A recent report by Hindenburg Research has put the Securities and Exchange Board of India (SEBI) Chairperson Madhabi Puri Buch and her husband under scrutiny, alleging that they hold stakes in offshore funds connected to Adani entities. The report has triggered a debate over potential conflicts of interest and the integrity of SEBI, India’s market regulator.

The Allegations:
Hindenburg Research, known for its critical financial investigations, claims that Madhabi Puri Buch and her husband Dhaval Buch invested in offshore funds linked to the Adani Group in 2015, before Madhabi Puri Buch assumed her role as SEBI Chairperson. The report suggests these investments could pose a conflict of interest, given Buch’s regulatory authority over the Adani entities.

Details of the Allegations:

• The report alleges that Madhabi Puri Buch held a 100% stake in an offshore Singaporean consulting firm called Agora Partners from April 2017 to March 2022, while serving as a whole-time member and later as Chairperson of SEBI.
• Upon becoming SEBI Chairperson in March 2022, Buch transferred her shares in Agora Partners to her husband.
• Agora Partners was registered in Singapore in 2013, and Madhabi Puri Buch currently holds a 99% stake in a company named Agora Advisory, with her husband Dhaval Buch serving as its director.
• In 2022, Agora Advisory reportedly generated a revenue of $261,000, approximately 4.5 times Buch’s salary as SEBI Chairperson.

Reactions and Calls for Action:
The Hindenburg report has elicited a spectrum of reactions. Some stakeholders, including political figures and market analysts, are calling for Madhabi Puri Buch’s resignation and a Joint Parliamentary Committee (JPC) investigation to ensure transparency and accountability. Congress spokesperson Supriya Shrinate highlighted the involvement of Agora and Blackstone in her statement, emphasizing the need for a thorough investigation into these claims.

Congress Spokesperson’s Statement:
In her post, Supriya Shrinate stated:

The Hindenburg Research report mentions SEBI Chairperson Madhabi Puri Buch along with Agora and Blackstone. These two entities play significant roles. According to the report:

• From April 2017 to March 2022, when Madhabi Puri Buch was a whole-time member and later Chairperson of SEBI, she held a 100% stake in an offshore Singaporean consulting firm called Agora Partners.
• In March 2022, upon becoming SEBI Chairperson, she transferred her shares to her husband, Dhaval Buch.
• Agora Partners was registered in Singapore in 2013.
• Currently, SEBI Chairperson Madhabi Puri Buch holds a 99% stake in a company named Agora Advisory, with her husband Dhaval Buch serving as its director.
• In 2022, Agora generated a revenue of $261,000, which is approximately 4.5 times the salary of SEBI Chairperson Madhabi Puri Buch.

Adani Group’s Response:
On the other hand, the Adani Group has dismissed the allegations as baseless and manipulative. They argue that Hindenburg’s report lacks concrete evidence and is part of a larger agenda to tarnish the group’s reputation.

Implications for SEBI and Regulatory Transparency:
This controversy has raised broader questions about the credibility of SEBI and the processes involved in appointing its officials. Critics argue that regulatory authorities must be free from any potential conflicts of interest to maintain market integrity and public trust. The call for a JPC investigation underscores the need for greater transparency in regulatory appointments and operations.

Conclusion:
As the debate continues, the spotlight remains on SEBI and its Chairperson Madhabi Puri Buch. The outcome of this controversy could have significant implications for India’s regulatory framework and the way conflicts of interest are managed within key financial institutions. Whether Buch’s investments indeed pose a conflict of interest or if they are part of a larger narrative against her and the Adani Group remains to be seen, but the demand for transparency and accountability is clearer than ever.