Madhabi Buch, husband issue detailed rebuttal to Hindenburg's allegations
Madhabi Puri Buch, the Chairperson of the Securities Exchange Board of India (SEBI), and her husband Dhaval Buch, have vehemently denied allegations made by Hindenburg Research. The accusations suggested that Madhabi had undisclosed stakes in offshore entities linked to the Adani Group. This claim raised questions about potential conflicts of interest and regulatory misconduct. However, the couple has now issued a comprehensive rebuttal to these charges.
Buchs clarify timing and nature of investment
The Buchs clarified that the disputed investment was made in 2015, when they were private citizens residing in Singapore. This was before Madhabi's tenure at SEBI. They attributed their investment decision to Dhaval's childhood friend and Chief Investment Officer, Anil Ahuja. The couple also emphasized that this investment was redeemed in 2018, and at no point did the fund invest in securities from the Adani Group.
Dhaval's role at Blackstone addressed
The couple also addressed Dhaval's 2019 appointment as Senior Advisor to Blackstone, which occurred prior to Madhabi assuming her role as SEBI Chairperson. They stated that his position was due to his expertise in supply chain management and had no connection with Blackstone's real estate division. The statement further highlighted that SEBI has issued over 300 circulars in the past two years, with regulations approved by its board after public consultation.
Response to allegations about consulting firms
The Buchs also responded to questions about Madhabi's consulting firms from Singapore. They stated that these companies were made dormant upon her appointment at SEBI, and were disclosed as part of her SEBI disclosures. The couple concluded their statement by condemning the Hindenburg Research report as a deliberate attempt to undermine SEBI and its chairperson, accusing Hindenburg of character assassination and ignoring a show cause notice issued for various violations in India.
Adani Group and Supreme Court's stance
The Adani Group has also dismissed Hindenburg's allegations as "malicious, mischievous, and manipulative selections of publicly available information." The conglomerate maintains that its overseas holding structure is fully transparent. In January, the Supreme Court refused to order a separate probe into the allegations of accounting fraud and stock manipulation against Adani. The court did not find reliance on the Hindenburg Research report or other unsubstantiated news reports as grounds for questioning SEBI's comprehensive investigation.
