From shares of ICICI to the Adani-Hindenburg scandal—As her term draws to a close, SEBI chief Madhabi Puri Buch faces five serious accusations.
The Finance Ministry has quashed rumors that incumbent Securities and Exchange Board of India (SEBI) Chair Madhabi Puri Buch’s tenure would be extended by posting advertisements seeking applications for the position.
The discussions started when Hindenburg Research, in its most recent attack on the Adani Group,
Charged Buch with having a “conflict of interest” while looking into claims of stock manipulation made by the Gautam Adani-led group of enterprises.
Top 5 Allegations Against SEBI's Madhabi Puri Buch
As Buch’s time draws to a close, we examine some of the most significant accusations made against the first female chairperson of the capital market watchdog, including her ICICI stock options and the conflict of interest claims made by Hindenburg Research during the Adani Group investigation.
Conflict of Interest in Adani Investigation by SEBI
Concerns around potential conflicts of interest and regulatory wrongdoing were raised when US-based short seller Hindenburg Research published a report in August 2024 criticizing Adani companies and implying that SEBI Chairperson Madhabi Puri Buch owned stock in offshore companies connected to the Group.
According to the article, Buch and her husband Dhaval Buch had investments in offshore firms that had connections to the Gautam Adani-led company, which is why SEBI was allegedly unwilling to take action on its January 2023 report on the Adani Group. Buch and her husband vehemently denied these assertions, calling them “baseless” and an attempt at “character assassination” and offering a thorough refutation of the charges.
Investments in Offshore Accounts
Additionally, according to the Hindenburg article, which referenced whistleblower papers, Buch and her husband had shares in the EM Resurgent Fund and Emerging India Focus Funds, two obscure offshore funds that the Adani Group reportedly used to launder money.
Stake in Singaporean Offshore Consulting Firm
Hindenburg also claimed that Madhabi Buch owned a 100% stake in Agora Partners, an offshore Singaporean consultancy firm, from April 2017 to March 2022, despite being a full-time SEBI employee. It further stated that two weeks after being named SEBI Chairperson, in March 2022, she gave her husband the shares.
Additionally, it claimed that she owned 99 percent of the Indian consultancy firm Agora Advisory, of which her husband serves as a director. “This entity reported $261,000 in consulting revenue in 2022, which is 4.4 times her disclosed salary at Sebi,” according to Hindenburg Research.
Additionally, when Buch was SEBI chair, the Congress party claimed that Agora Advisory received close to ₹3 crore in consulting fees from listed businesses, such as Mahindra & Mahindra, Pidilite, and Dr. Reddy’s Laboratories.
