On August 10, 2024, Hindenburg Research, known for its investigative reports on corporate conduct, published a report alleging connections between Madhabi Buch, the current Chairperson of the Securities and Exchange Board of India (SEBI), and offshore funds reportedly linked to the Adani Group.
NEW FROM US:
Whistleblower Documents Reveal SEBI’s Chairperson Had Stake In Obscure Offshore Entities Used In Adani Money Siphoning Scandalhttps://t.co/3ULOLxxhkU
— Hindenburg Research (@HindenburgRes) August 10, 2024
According to Hindenburg Research, “whistleblower documents show that Madhabi Buch, the current Chairperson of SEBI, and her husband had stakes in both obscure offshore funds used in the Adani money siphoning scandal.”
The report claims that “Madhabi Buch and her husband Dhaval Buch first appear to have opened their account with IPE Plus Fund 1 on June 5th, 2015 in Singapore.” Hindenburg alleges this fund is part of a “complex nested structure, used by Vinod Adani,” brother of Gautam Adani.
Hindenburg Research states that “documents show SEBI Chairperson Madhabi Buch and her husband had stakes in a multi-layered offshore fund structure with miniscule assets, traversing known high-risk jurisdictions, overseen by a company with reported ties to the Wirecard scandal, in the same entity run by an Adani director and significantly used by Vinod Adani in the alleged Adani cash siphoning scandal.”
The report also alleges that “from April 2017 to March 2022, while Madhabi Buch was a Whole Time Member and Chairperson at SEBI, she had a 100% interest in an offshore Singaporean consulting firm, called Agora Partners.” Hindenburg claims that “on March 16th, 2022, two weeks after her appointment as SEBI Chairperson, she quietly transferred the shares to her husband.”
Furthermore, Hindenburg Research reports that “Madhabi Buch currently has a 99% stake in an Indian consulting business called Agora Advisory, where her husband is a director.” They allege that “in 2022, this entity reported $261,000 revenue from consulting, 4.4 times her disclosed salary at SEBI.”
The report also raises questions about potential conflicts of interest regarding Real Estate Investment Trusts (REITs). Hindenburg claims that “during Dhaval Buch’s time as advisor to Blackstone, SEBI has proposed, approved and facilitated major REIT regulations changes.” They allege that these changes benefit “private equity firms like Blackstone,” where Buch’s husband works as a senior advisor.
Hindenburg Research concludes by stating, “We suspect SEBI’s unwillingness to take meaningful action against suspect offshore shareholders in the Adani Group may stem from Chairperson Madhabi Buch’s complicity in using the exact same funds used by Vinod Adani, brother of Gautam Adani.”
As of the publication of this article, SEBI and Madhabi Buch have not commented on these allegations. It’s important to note that these claims are based solely on Hindenburg Research’s report and have not been independently verified or confirmed by any regulatory or judicial authority.
Source: Hindenburg Research
