“Sebi has made a statement. The chairperson has also made a statement. There is nothing further to be added by the government,” Ajay Seth, economic affairs secretary in the finance ministry, told reporters in New Delhi.
Sheth is also on the board of Sebi as a nominee of the finance ministry.
But the US firm said there was a ‘massive conflict of interest’ in the Sebi investigation into the Adani case.
Hindenburg Research alleged that Madhabi Puri Buch and her husband had stakes in an obscure offshore fund, IPE Plus, that had been part of a complex, nested structure used by Vinod Adani, brother of billionaire Gautam Adani.The Buch couple, in their statement, said their investment in the fund referred to in the Hindenburg report was made in 2015 when they were both private citizens living in Singapore and almost two years before Madhabi Buch joined Sebi as a whole-time member.Hindenburg on Sunday said “Buch’s response now publicly confirms her investment in an obscure Bermuda/Mauritius fund structure, alongside money allegedly siphoned by Vinod Adani. She also confirmed the fund was run by a childhood friend of her husband, who at the time was an Adani director.” “Sebi was tasked with investigating investment funds relating to the Adani matter, which would include funds Ms. Buch was personally invested in and funds by the same sponsor which were specifically highlighted in our original report,” it said.
The US short-seller also accused Buch of maintaining active consulting firms while serving as Sebi chief.
“Per its latest shareholding list as of March 31st, 2024, Agora Advisory Limited (India), is still 99% owned by Madhabi Buch, not her husband. This entity is currently active and generating consulting revenue,” Hindenburg Research said.
“Furthermore, Buch remained a 100% shareholder of Agora Partners Singapore until March 16th, 2022, per Singaporean records, owning it during her entire time as a SEBI Whole Time Member. She only transferred her shares into her husband’s name two weeks after her appointment as SEBI Chairperson,” it said.
On Sunday, the Sebi chief and her husband said the two consulting companies they owned became immediately dormant on her appointment to the regulatory body in 2017.
An email sent to the Sebi chairperson remained unanswered until the publication of this report.
“The Indian entity, still 99% owned by the SEBI Chairperson, has generated Rs 23.985 million (U.S. ~$312,000) in revenue (i.e. consulting) during the financial years (’22, ’23, and ’24), while she was serving as Chairperson, per its financial statements,” the Hindenburg report said.
Buch was appointed a whole-time member at the capital markets regulator in 2017 and became its chairperson in March 2022.
“In 2017, weeks ahead of her appointment as Sebi Whole Time Member, she ensured the accounts with ties to Adani be registered solely in the name of Dhaval Buch, her husband, per whistleblower documents,” the firm said.