An inquiry into claims against Securities and Exchange Board of India (Sebi) Chairperson Madhabi Puri Buch found nothing incriminating, according to government sources, and she will complete her term, which expires in February 2025.
The investigation was prompted by serious allegations of conflict of interest and financial misconduct brought against the Sebi chairman Buch by US firm Hindenburg Research and the Congress party, according to sources.
The row began when Hindenburg Research questioned Sebi Chairperson Madhabi Puri Buch's silence on claims of conflict of interest and financial misconduct. Hindenburg claimed Buch may have private financial ties to the Adani Group, which is also being investigated.
Madhabi Puri Buch and her husband, Dhaval Buch, responded to the allegations by calling the Hindenburg report's claims "groundless" and "without merit."They emphasised that their financial records were clear and referred to the allegations as an attempt at "character assassination."
The Buchs later issued a thorough joint statement rebutting Hindenburg Research's allegations. They clarified that their investment in the fund, which Hindenburg claimed was related to alleged "Adani stock manipulation," occurred two years before Madhabi joined Sebi.
The controversy erupted as the Congress party amplified their accusations. On September 2, 2024, Congress leader Pawan Khera accused Buch of accepting revenues from ICICI Bank after taking over Sebi, violating the regulator's conflict-of-interest guidelines.
Khera, citing papers, alleged Buch received roughly Rs 17 crore in pay from ICICI Bank between 2017 and 2024, raising speculation about potential financial links throughout her tenure.
Khera further claimed that Buch received rental income from Carol Info Services Ltd, a company linked to Wockhardt Ltd. that is being investigated by the Sebi.
The Congress party labelled the situation as "out-and-out corruption," emphasising the gravity of the allegations.
Khera further claimed that Buch owned 99% of Agora Advisory Pvt Ltd, which offered consultancy services to firms such as Mahindra and Mahindra when she was adjudicating matters involving them.
Responding to the allegations the companies involved, including Mahindra & Mahindra and Dr. Reddy's Laboratories, denied any conflict of interest.
Mahindra & Mahindra maintained that Dhaval Buch's consultation was based on his professional expertise, and payments were provided prior to Madhabi's appointment as Sebi Chairperson. Dr. Reddy's Laboratories stated that their dealings with Dhaval Buch were unrelated to any Sebi enquiries.
The accusations against the Sebi chief were reportedly being investigated by the Parliamentary Public Accounts Committee (PAC) in response to the growing scrutiny.
Sources now claim that Buch has been cleared of any misconduct by the probe, ensuring that neither she nor her family will face any consequences.
Follow us
