On Sunday, Madhabi Puri Buch, chairperson of the Securities and Exchange Board of India (Sebi), and her husband, Dhaval Buch, vehemently denied allegations of impropriety made by the short seller Hindenburg Research.
The Buchs criticized Hindenburg for undermining Sebi’s credibility and attempting to discredit its chairperson instead of responding to a show cause notice issued to them by the market regulator. They expressed their frustration with the short seller’s choice to attack Sebi’s reputation rather than address the specific allegations.
In their detailed response, the Buchs clarified that their investment in a particular fund was made while they were private individuals, not holding any official positions. They emphasized that their investment decision was based on their trust in the fund’s chief investment officer, Anil Ahuja, who had a distinguished career in finance.
Sebi Chairperson Madhabi Buch and Husband Deny Hindenburg Allegations, Defend Investments and Transparency
They also stated that once Ahuja left the fund in 2018, they redeemed their investment and confirmed that the fund did not invest in any Adani Group securities during their investment period.
Hindenburg’s report had raised concerns about the Buchs’ investments in funds with exposure to Adani Group stocks and suggested that Sebi’s probe into Adani was ineffective. The report also pointed to Ahuja’s previous role on the board of Adani Enterprises as a potential conflict of interest.
In response, 360 One Wam, the fund manager, clarified that the IPE-Plus Fund 1, which the Buchs invested in, had no investments in Adani Group securities, either directly or indirectly.
The Adani Group also responded to Hindenburg’s report, dismissing it as a deliberate attempt to damage their reputation. Adani stated that Ahuja’s past roles with the group were unrelated to the current accusations, and that their group maintained a firm commitment to transparency and regulatory compliance.
They asserted that there was no commercial relationship between the Buchs and the Adani Group concerning the allegations made.
Furthermore, the Buchs addressed concerns regarding their past business dealings, asserting that the consulting companies linked to them had ceased operations upon Madhabi Buch’s appointment to Sebi.
They also addressed Dhaval’s advisory role at Blackstone, asserting that it was due to his expertise in supply chain management, and not related to Sebi’s regulatory matters. They reinforced that all necessary disclosures had been made and that Sebi’s institutional mechanisms for disclosure and recusal were strictly adhered to.
