In a series of tweets, Hindenburg Research has responded to SEBI Chairperson Madhabi Puri Buch and her husband, Dhaval Buch, regarding allegations made on August 10, 2024. The Buchs had defended their investment in a fund made in 2015, prior to Madhabi Buch joining SEBI in 2017, stating the decision was influenced by Anil Ahuja, a childhood friend of Dhaval Buch and a seasoned investor. They emphasized that the fund had no investments in Adani Group securities.
Hindenburg countered by highlighting significant admissions in the Buchs’ response, including confirmation of investment in a Bermuda/Mauritius fund allegedly linked to funds siphoned by Vinod Adani. They also pointed out that the fund was managed by Ahuja, who had ties to Adani Group, suggesting a potential conflict of interest.
Further, Hindenburg claimed that while Madhabi Buch stated that her consulting companies became dormant after her SEBI appointment, her husband took over these businesses in 2019, with Madhabi still owning 99% of Agora Advisory Limited in India. The Singaporean entity, Agora Partners Singapore, was wholly owned by her until March 2022, when ownership was transferred to her husband shortly after she became SEBI Chairperson.
The Singaporean consulting entity she set up doesn’t publicly report its financials like revenue or profit so it’s impossible to see how much money this entity has earned during her time at SEBI.
The Indian entity, still 99% owned by the SEBI Chairperson, has generated INR… pic.twitter.com/NXQkOsSkgD
— Hindenburg Research (@HindenburgRes) August 11, 2024
This is especially important given whistleblower documents showing that Buch used her personal email to do business using her husband’s name while serving as a Whole Time Member of SEBI.
In 2017, weeks ahead of her appointment as SEBI Whole Time Member, she ensured the accounts… pic.twitter.com/zeGWoUDC5A
— Hindenburg Research (@HindenburgRes) August 11, 2024
The research firm also noted that Agora Advisory Limited generated INR 23.985 million (about USD 312,000) in revenue during the financial years 2022-2024 while Madhabi Buch was SEBI Chairperson. They raised concerns about possible undisclosed business activities, referencing whistleblower documents alleging use of personal emails for business transactions under her husband’s name.
Additionally, Hindenburg alleged that before her SEBI appointment, Madhabi Buch ensured that accounts connected to Adani were registered under her husband’s name. They cited a private email suggesting she redeemed stakes in funds through her husband. The firm has called for a full, transparent investigation and disclosure of all consulting clients and business dealings related to both Buchs.