Hindenburg’s first reaction to Congress allegations against Sebi chief Madhabi Buch: ‘Complete silence for weeks’

Responding to recent allegations levelled by the opposition Congress, New York-based Hindenburg Research on Wednesday said Securities and Exchange Board of India (SEBI) Chairman Madhabi Puri Buch had remained completely silent for weeks regarding all the emerging issues.

“Buch has maintained his complete silence for weeks on all emerging issues,” the New York-based short seller said in a message on X.

“New allegations have emerged that the private consulting entity, 99% owned by SEBI Chairperson Madhabi Buch, accepted payments from several listed companies regulated by SEBI during her tenure as a permanent member of SEBI. These companies include: Mahindra & Mahindra, ICICI Bank, Dr. Reddy’s and Pidilite. These allegations apply to Buch’s Indian consulting entity, with no details so far on Buch’s Singapore-based consulting entity,” Hindenburg said in response to the Congress allegations.

Meanwhile, the Mahindra Group spokesperson said that the Mahindra Group hired Mr Dhaval Buch in 2019 specifically for his supply chain and procurement expertise, shortly after he retired as Unilever’s global procurement director.

“He spent most of his time with Bristlecone, a subsidiary which is a supply chain consulting firm. Mr. Buch currently serves on the board of Bristlecone. He joined the Mahindra Group almost 3 years before Ms. Madhabi Puri Buch was appointed as the Chairperson of SEBI.”

“The compensation was specifically and solely awarded for Mr. Buch’s supply chain expertise and management acumen, based on his global experience at Unilever. We categorically state that we have not at any point sought preferential treatment from SEBI. We maintain the highest standards of corporate governance,” the company spokesperson said.

We consider these allegations to be false and misleading in nature, he added.

Here’s what Congress alleged about Sebi chief

Earlier on Tuesday, the Congress made “shocking” revelations, claiming that Buch and her husband had earned crores of rupees from six listed companies, including Mahindra and Mahindra.

The Congress said that despite her claims that the consultancy firm she owns became inactive when she assumed office, Agora Private Limited continued to operate and had a turnover of ₹2.95 crores between 2016 and 2024.

Congress said Agora’s clients include Mahindra and Mahindra Limited, Dr. Reddy’s, Pidilite, ICICI, Sembcorp and Visu Leasing & Finance.

“Strangely, out of the total ₹“2.95 crores was received by Agora Advisory Private Limited, 2.59 crores came from one entity – Mahindra & Mahindra Group. This is 88 per cent of the total money received by Agora Advisory,” he said.

The party added that “as if this was not shocking enough, SEBI Chairperson Dhaval Buch’s husband received ₹4.78 Crores of personal income from M&M. This is in addition to the ₹“2.95 crores received by “Agora Advisory Private Limited” through its consultancy services.”

Hindenburg’s allegations against Sebi chairman

Recently, Hindenburg Research, a US-based short-selling firm, levelled accusations against SEBI Chairperson Madhabi Puri Buch, alleging a conflict of interest. Last month, Hindenburg alleged that Buch and her husband, Dhaval Buch, held stakes in “the shadowy offshore entities involved in the Adani embezzlement scandal.” The allegations were based on documents provided by a whistleblower and investigations by other organisations, according to Hindenburg Research.

Statement by Sebi chief on allegations

Soon after, the SEBI chairperson and her husband, in their personal capacity, issued a detailed statement refuting the allegations.

“In the context of the allegations made against us in the Hindenburg Report dated August 10, 2024, we wish to state that we strongly deny the baseless allegations and insinuations made in the report. These are devoid of any truth. Our life and finances are an open book. All required disclosures have already been provided to SEBI over the years. We have no hesitation in disclosing all financial records, including those relating to the period when we were strictly private citizens, to any authority that may request them. Further, in the interest of complete transparency, we will issue a detailed statement in due course,” both parties said in the joint statement released to the media.