After Hindenburg accused Madhabi Puri Buch and her husband, Dhaval Buch, of having stakes in Adani Group’s offshore funds, the couple came out with a detailed statement, claiming that Hindenburg’s allegations are baseless. They described the insinuation by the firm as “malicious and motivated”.

Responding to that, Hindenburg regarding potential conflicts of interest and transparency within India’s regulatory framework.

“Buch’s response now publicly confirms her investment in an obscure Bermuda/Mauritius fund structure, alongside money allegedly syphoned 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,” said Hindenburg.

Pointing out to a conflict of interest in SEBI conducting an investigation on Adani Group, it said, “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.”

The short-seller also informed in the thread that Agora Advisory is 99% owned by Madhabi Buch, and it is currently ‘active and generating consulting revenue’.

Hindenburg also said that Buch remained a 100% shareholder of Agora Partners Singapore until March 16, 2022, per Singaporean records, owning it during her entire time as a SEBI member. She only transferred her shares into her husband’s name 2 weeks after her appointment as SEBI Chairperson.

According to Hindenburg, the Indian entity which is still 99% owned by Buch has generated ₹23.98 million (U.S. ~$3,12,000) in revenue during the financial years (‘22, ‘23, and ‘24), while she was serving as SEBI Chairperson, per its financial statements. 

The short-seller also alleged that whistleblower documents showed that Buch used her personal email to do business using her husband’s name while serving as a Whole Time Member of SEBI.

“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.” stated Hindenburg.

“Despite disclaiming control, a private email she sent a year into her SEBI term shows she redeemed stakes in the funds through her husband’s name, per the whistleblower documents,” it added.

With this, Hindenburg asked, “What other investments or business has the SEBI Chairperson engaged in through her husband’s name while serving in an official capacity?”

The thread further read, “Buch said her husband used the consulting entities starting in 2019 to transact with unnamed ‘prominent clients in the Indian industry’.”

From that, Hindenburg asked if these include clients SEBI is tasked with regulating?