Adani-Hindenburg Part 2: Five Things You Need To Know From SEBI Chief’s Latest Statement

SEBI chair Madhabi Puri Buch and her husband Dhaval Buch have categorically denied the allegations made by Hindenburg Research in a statement issued today.

"There are certain allegations made against SEBI which would be addressed by the institution independently," the release stated, while going on to address the personal accusations against the couple.

1. Investment in IPE-Plus Fund made before joining SEBI

The Buchs clarified that their investment in the IPE-Plus Fund, mentioned in the Hindenburg report, was made in 2015 when they were private citizens living in Singapore, nearly two years before Madhabi joined SEBI. 

The decision to invest was influenced by the Chief Investment Officer, Anil Ahuja, who had an extensive career in finance and is a childhood friend of Dhaval Buch’s.

"As confirmed by Anil Ahuja, at no point in time did the fund invest in any bond, equity, or derivative of any Adani group company," the statement added.

2. All disclosures made to Sebi in advance

Regarding Dhaval Buch’s 2019 appointment as Senior Advisor to Blackstone Private Equity, the statement explained that it was based on his expertise in supply chain management and was publicly known long before Madhabi became SEBI Chairperson.

After his appointment, Blackstone was added to Madhabi’s recusal list at SEBI to avoid conflicts of interest.

3. SEBI circulars approved by Board, not Chairperson

The couple also addressed claims of undue influence in SEBI's actions. They noted that over the past two years, SEBI has issued more than 300 circulars, all approved by its board after public consultation.

“All regulations of SEBI are approved by its Board (and not by its Chairperson) after extensive public consultation. Insinuations that a handful of these matters related to the REIT industry were favours to any specific party are malicious and motivated," the statement said.

4. Disclosure probity maintained

The statement further clarified that the two consulting firms Madhabi Buch set up during her time in Singapore became dormant immediately upon her appointment with SEBI, and her shareholdings in them were fully disclosed to SEBI.

5. Hindenburg should reply to notice

“Hindenburg has been served a show cause notice for a variety of violations in India”, the statement said.

“It is unfortunate that instead of replying to the Show Cause Notice, they have chosen to attack the credibility of the SEBI and attempt character assassination of the SEBI Chairperson”.