Hindenburg Finds Fault With Sebi Chief On Silence

New allegations have emerged that the private consulting entity, 99% owned by Sebi Chair Madhabi Buch, accepted payments from multiple listed companies regulated by Sebi during her time as Sebi Whole-Time Member. The companies include M&M, ICICI Bank, Dr Reddy’s and Pidilite, Hindenburg said in a post on X

New Delhi: US-based short seller Hindenburg Research has questioned Sebi chief Madhabi Puri Buch’s complete silence on fresh allegations of impropriety, conflict of interest and accepting payments from companies while serving as a member of the market regulator.

Hindenburg, which had in January 2023 accused Adani Group of using tax havens to sidestep local market regulations, had last month alleged that Securities and Exchange Board of India (Sebi) chairperson Buch’s previous investments and dealings may be behind the slow probe against the conglomerate.

While Buch and the Adani Group had denied last month’s allegations, the opposition Congress party has in recent days made a series of allegations against Buch including holding 99 per cent shares in a company actively providing advisory/consultancy services till date and her husband Dhaval Buch earning income from companies that were being adjudicated by her.

Buch, who has so far not responded to the allegations, on Thursday cancelled her appearance at the NaBFID Infrastructure Conclave in Mumbai. She was listed as a keynote speaker at the conclave.

“New allegations have emerged that the private consulting entity, 99 per cent owned by Sebi Chair Madhabi Buch, accepted payments from multiple listed companies regulated by Sebi during her time as Sebi Whole-Time Member. The companies include: Mahindra & Mahindra, ICICI Bank, Dr. Reddy’s and Pidilite,” Hindenburg said in a post on X, formerly Twitter.

These allegations, it said: “Apply to Buch’s Indian consulting entity with no details thus far on Buch’s Singapore-based consulting entity. Buch has maintained her complete silence for weeks on all of the emerging issues,” it added.

Hindenburg had on August 11 alleged that Buch had previous investments in an offshore fund, also used by the Adani Group. Buch and her husband had denied those allegations. Since then, Congress and Zee group chairman Subhash Chandra have levelled charges against them, but they have not responded so far. Congress has alleged that Dhaval Buch earned Rs4.78 crore from Mahindra Group at a time when the regulator was investigating it for market infractions. Responding to the allegation, Mahindra & Mahindra has stated that the Group hired Dhaval Buch in 2019 specifically for his expertise in supply chain and sourcing, soon after he retired as Unilever’s Global Chief Procurement Officer.

It said he joined Mahindra Group almost 3 years before Madhabi Puri Buch was appointed as Sebi chairperson.

“Compensation has been specifically and only for Buch’s supply chain expertise and management acumen, based on his global experience at Unilever.”