Madhabi, Dhaval’s Detailed Response to Hindenburg: “Instead Of Replying To Show Cause…”
In a strong rebuttal to the latest allegations made by Hindenburg Research, SEBI Chairperson Madhabi Puri Buch and her husband, Dhaval Buch, have released a detailed statement addressing claims of a conflict of interest involving their alleged stakes in offshore funds tied to the Adani Group’s money-laundering scandal. The couple refuted the allegations on Sunday, a day after the Hindenburg Report released, and assured transparency and provided a comprehensive defense detailing their decades long career and business deals.
Madhabi Buch and her husband dismissed the accusations of holding stakes in offshore funds linked to the Adani Group, labeling the claims as “malicious and motivated.” They clarified that the investments in question were made in 2015, two years before Madhabi’s appointment as a Whole-Time Member of SEBI. The investment was made through IPE Plus Fund 1, a Mauritius-registered offshore fund. The Buchs stressed that this investment decision was driven by Dhaval’s long-time friendship with the fund’s Chief Investment Officer, Anil Ahuja, who had a credible career in investing.
The Buchs revealed that when Ahuja left his position as CIO of the fund in 2018, they redeemed their investment, underscoring that at no point did the fund invest in any Adani Group securities. “As confirmed by Mr. Ahuja, at no point in time did the fund invest in any bond, equity, or derivative of any Adani group company,” the Buchs stated, countering the claims of involvement with the Adani Group.
Regarding Dhaval Buch’s role as Senior Advisor to Blackstone, one of India’s largest private equity firms, the couple clarified that his appointment was due to his expertise in supply chain management and occurred in 2019, predating Madhabi’s SEBI Chairperson role. They pointed out that Blackstone was added to Madhabi’s recusal list at SEBI immediately after her appointment, ensuring no conflict of interest.
Further, they addressed the consulting firms owned by Madhabi during her time in Singapore. They confirmed that these companies became dormant once Madhabi joined SEBI, and all relevant disclosures were made to the authorities. Dhaval’s consultancy work post-retirement from Unilever was highlighted, where his expertise in supply chain allowed him to work with prominent Indian clients. The couple refuted any links between these consulting revenues and Madhabi’s SEBI salary, describing such insinuations as “malicious.”
Madhabi Buch also stressed on SEBI’s institutional mechanisms, stating that all regulations are approved by the SEBI Board, not solely by the Chairperson. She noted that over 300 circulars had been issued under her leadership, all following public consultation. The couple rejected the notion that any regulations were tailored to benefit specific parties, particularly those related to the Real Estate Investment Trust (REIT) industry, stating these allegations were unfounded and driven by ulterior motives.
The Buchs criticised Hindenburg for attacking SEBI’s credibility instead of responding to the show-cause notice served to them for various violations in India. “It is unfortunate that instead of replying to the Show Cause Notice, they have chosen to attack the credibility of SEBI and attempt character assassination of the SEBI Chairperson,” they remarked, signaling a clear defense against the research firm’s latest offensive.
