Madhabi Puri Buch, the current chairperson of the Securities and Exchange Board of India (SEBI) is facing significant scrutiny following recent allegations made by Hindenburg Research. The research firm’s latest report released on August 10, 2024, claims that Buch and her husband, Dhaval Buch were involved in offshore entities connected to the Adani Group’s alleged financial misconduct. These allegations suggest that the Buchs held stakes in Bermuda and Mauritius funds tied to Adani’s operations raising questions about their role in financial oversight and possible conflicts of interest.
Allegations and Their Implications
The Hindenburg Research report accuses the Buchs of being part of a network of offshore entities used by the Adani Group. It claims that the Buchs’ investments in these obscure funds date back to 2015, and were allegedly sourced from their earnings. This has led to concerns that SEBI under Buch’s leadership, may have been reluctant to act decisively against the Adani Group due to potential conflicts of interest. The report also points to SEBI’s delayed or inadequate response to the Adani Group’s financial issues, suggesting that Buch’s involvement in these funds could be influencing the regulator’s actions.
In response to these allegations, both Madhabi and Dhaval Buch have denied any wrongdoing. They describe the report as an attempt at character assassination especially in light of SEBI’s recent enforcement actions against Hindenburg Research and its owner, Nathan Anderson. The Buchs have promised full transparency and are willing to provide any financial documents if required by authorities.
Madhabi Puri Buch’s Career Achievements
Despite the controversy, Madhabi Puri Buch’s career has been marked by significant achievements and pioneering roles in finance. Born in 1966 in Mumbai, Buch was educated in mathematics and finance before earning an MBA from the Indian Institute of Management (IIM) Ahmedabad. Her career in finance began in 1989 at ICICI Bank, where she held various roles, eventually becoming the Managing Director and CEO of ICICI Securities in 2009. Her leadership was instrumental in expanding ICICI Securities’ market share and introducing innovative investment products.
Buch’s global experience includes serving as a consultant to the New Development Bank in Shanghai and leading the Singapore office of Greater Pacific Capital. Her return to India saw her take on important roles on the boards of major companies like Idea Cellular Ltd and NIIT Limited. In 2017, she was appointed as a Whole Time Member (WTM) of SEBI, managing key portfolios such as surveillance and mutual funds.
Historic SEBI Appointment
In March 2022, Buch made history by becoming the first woman to chair SEBI. Her appointment was a significant milestone for gender equality in Indian finance. As SEBI Chairperson, Buch has been responsible for overseeing crucial regulatory functions, including market surveillance and policy reforms. Her leadership has been marked by efforts to modernize India’s financial markets and advance the National Institute of Securities Markets (NISM).
Dhaval Buch: Professional Background
Dhaval Buch, Madhabi’s husband, has also had a notable career, though less publicized. His professional achievements mirror Madhabi’s success in the corporate world. However, recent allegations have brought him into the spotlight, linking him to the offshore entities mentioned in the Hindenburg report. The scrutiny over his and Madhabi’s financial interests has raised questions about the transparency and integrity of SEBI’s regulatory practices.
Hindenburg’s Report and SEBI’s Response
Hindenburg Research’s report continues to criticize SEBI’s lack of action against the Adani Group, accusing the regulator of being disinterested in pursuing offshore shareholders involved in alleged financial misconduct. The report highlights the “IPE Plus Fund,” a minor offshore Mauritius fund connected to Adani’s financial dealings. According to the report, Madhabi Puri Buch and Dhaval Buch had stakes in this fund, leading to accusations of conflicts of interest.
SEBI, under Buch’s leadership, has not publicly acted against the Adani Group despite evidence presented by Hindenburg Research. The report alleges that this inaction might be due to Buch’s connections to the same funds used by Adani’s associates.
