Hindenburg row: Top 3 allegations against Sebi chairperson Madhabi Puri Buch

US-based investment research firm, Hindenburg Research LLC, has alleged that Securities Exchange Board of India (SEBI) chairperson Madhabi Puri Buch and her husband Dhaval Buch owned stakes in two offshore funds used allegedly in what Hindenburg calls the “Adani money siphoning scandal”.
Madhabi Puri Buch and her husband have denied the allegations, calling them ‘baseless’ and a ‘character assassination’ attempt.
Here are the top three allegations in the new Hindenburg report.
On March 22nd, 2017, just weeks ahead of Buch’s appointment as a Sebi member, Dhaval Buch, the husband of Madhabi Puri Buch wrote a letter to Mauritius fund administrator Trident Trust, asking to “be the sole person authorised to operate the accounts,” which the report claims were for moving his wife’s name out of the Global Dynamic Opportunities Fund (“GDOF”) before the politically sensitive appointment.
In April 2017, Buch joined Sebi as a whole-time member, and on February 28, 2018, they sought redemption of all units.
Madhabi Puri Buch allegedly  had a 100% stake in an offshore Singapore-based consulting firm called Agora Partners from April 2017 to March 2022, at the same time when she was Chairperson at Sebi. But she transferred all the shares to her husband, two weeks after her appointment as Sebi chairperson on March 16, 2022, the report said.
The Hindenburg report claims that Singaporean entities are exempt from disclosing financial statements, so it is unclear the amount of revenue it derives from its consulting business and from whom.
Buch also currently has a 100% stake in an Indian consulting business called Agora Advisory, with her husband as a director, the report added.
In 2019, Dhaval Buch was appointed as a senior advisor to Blackstone, during Madhabi Buch’s tenure as a Sebi member, the report claimed. This was even though he had never before worked in a fund, real estate, or capital markets, and having had experience mostly in procurement and all aspects of the supply chain, having worked most of his life in Unilever, rising to the position of Chief Procurement Officer, according to his LinkedIn profile.
Blackstone is one of the largest investors and sponsors of REITS, an asset class. Blackstone sponsored Mindspace and Nexus Select Trust, India’s second and fourth REIT to receive SEBI approval for an IPO.
During Dhaval Buch’s time as advisor to Blackstone, SEBI proposed and approved major REIT regulations changes including seven consultation papers, three consolidated updates, two new regulatory frameworks and nomination rights for units, all of which are for benefiting private equity firms Like Blackstone.