US-based short seller Hindenburg Research has criticised the "complete silence" of Securities and Exchange Board of India (SEBI) Chairperson Madhabi Puri Buch in response to new allegations of conflicts of interest and improper payments.
Hindenburg claims that Buch accepted payments from companies under SEBI’s regulation while serving as a market regulator.
Hindenburg, which previously accused the Adani Group of regulatory violations in January 2023, recently alleged that Buch’s personal financial dealings may have slowed the probe into the conglomerate.
While both Buch and Adani denied the earlier accusations, the opposition Congress party has also raised concerns. Congress claims Buch holds a 99 per cent stake in a company providing consultancy services and has questioned her husband Dhaval Buch’s earnings from companies being investigated by SEBI.
Madhabi Buch has yet to respond publicly and recently cancelled her scheduled appearance at the NaBFID Infrastructure Conclave in Mumbai, where she was to deliver a keynote speech.
In a post on X (formerly Twitter), Hindenburg said Buch’s Indian consulting entity, which she allegedly owns 99 per cent of, accepted payments from several companies regulated by SEBI, including Mahindra & Mahindra, ICICI Bank, Dr Reddy’s Laboratories, and Pidilite Industries. Hindenburg added that no details have yet emerged about Buch’s Singapore-based consulting entity.
The allegations include that the Buchs opened an account in 2015 to invest in a Mauritius-based fund tied to Adani associates. The fund has been linked to stock price manipulation. Both Madhabi and Dhaval Buch have denied these claims, calling Hindenburg’s allegations an attack on SEBI’s credibility and their personal reputations.
Mahindra Group has defended its hiring of Dhaval Buch, stating he was recruited for his supply chain expertise in 2019, three years before Madhabi Buch became SEBI chairperson. Dr Reddy’s and Pidilite have also issued denials, asserting no conflict of interest in their engagements with Dhaval Buch.
The controversy continues as Buch remains silent on the matter, with increasing scrutiny from political and market observers.
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