Hindenburg Research Says SEBI Chief Madhabi Puri Buch’s Response Raises New Critical Questions

Hindenburg Research responded to SEBI chief Madhabi Buch’s and husband Dhaval statements, calling the US short-seller’s Saturday report an attempt of “character assassination” of the regulatory chief.

Taking its official X, formerly Twitter, handle late Sunday, Hindenburg said that Puri Buch's response “includes several important admissions and raises numerous new critical questions.”  

SEBI Chairperson Madhabi Buch’s response to our report includes several important admissions and raises numerous new critical questions.

(1/x) https://t.co/Usk0V6e90K

— Hindenburg Research (@HindenburgRes) August 11, 2024

Hindenburg, in its release on Sunday, said they had detailed their investments through the offshore investment vehicles. They also said that Hindenburg was served a show cause notice for violations of various laws in India. 

In its reply, Hindenburg, among several follow-up queries and comments, pointed towards an email by Puri Buch that she sent on behalf of her husband on Feb 25, 2018. “This is especially important given whistleblower documents showing that Buch used her personal email to do business using her husband’s name while serving as a whole-time member (WTM) of Sebi,” Hindenburg said, replying to news agency ANI's tweet carrying statements.

“In 2017, weeks ahead of her appointment as Sebi (WTM), she ensured the accounts with ties to Adani “be registered solely in the name of Dhaval Buch,” her husband, per whistleblower documents. “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,” Hindenburg said.

Also Read | How Hindenburg Research's Allegations Against SEBI Chairperson Madhabi Buch Will Affect the Indian Market.

“This raises the question: What other investments or business has the Sebi chairperson engaged in through her husband's name while serving in an official capacity?”

The reply from the US short seller also learned that Buch’s response now publicly confirmed her investment in an obscure Bermuda/Mauritius fund structure, alongside money allegedly siphoned by Vinod Adani (elder brother of Gautam Adani). “She also confirmed the fund was run by a childhood friend of her husband, who at the time was an Adani director,” it said.

While attaching a screenshot, the short-seller also said that one of the two advisory firms was still generating revenue, despite claims that they were dormant.