Madhabi Puri Buch, the Chairperson of the Securities and Exchange Board of India (SEBI), and her husband Dhaval Buch have firmly denied any involvement in Adani Group entities, responding to allegations made by Hindenburg Research. The Buchs clarified that their investment in a fund mentioned in the report occurred two years before Madhabi Puri Buch's appointment as SEBI chief and was not connected to the Adani Group.
In a detailed statement issued on Sunday, the Buchs countered the allegations by explaining that they invested in IPE Plus Fund 1, managed by 360 ONE Asset and Wealth Management (formerly known as IIFL Wealth Management), in 2015. At the time, they were private citizens residing in Singapore, and the decision to invest was based on the expertise of the fund's Chief Investment Officer, Anil Ahuja, a longtime friend of Dhaval Buch with a strong background in investment.
The Buchs emphasized that their investment was redeemed in 2018, following Ahuja's departure from the fund, and that the fund did not invest in any Adani Group entities. They described the claims in Hindenburg's report as "baseless" and an attempt at "character assassination."
The Hindenburg report, which accused the Adani Group of engaging in stock manipulation and other financial misconduct, suggested that Madhabi Puri Buch had a stake in offshore entities linked to the alleged scandal. The report also alleged that Dhaval Buch transferred control of their investments shortly before Madhabi Puri Buch's appointment as SEBI chief, possibly to avoid scrutiny.
In response, the Buchs stated that their financial dealings have always been transparent and that the claims made by Hindenburg were unfounded. They also addressed allegations of conflicts of interest related to Dhaval Buch's role with the investment management company Blackstone, clarifying that his appointment was due to his expertise in supply chain management and was unrelated to Madhabi Puri Buch's role at SEBI. Furthermore, they noted that Blackstone was added to Madhabi Puri Buch's "recusal list" at SEBI following Dhaval's appointment.
Hindenburg's new report, published 18 months after its initial whistleblower claim against the Adani Group, has reignited controversy surrounding the conglomerate. The earlier report led to a significant decline in Adani Group's stock value and resulted in a Supreme Court-directed investigation by SEBI. Despite the ongoing scrutiny, no adverse findings have been reported against the Adani Group, and SEBI continues its investigation.
In light of the fresh allegations, opposition parties in India have called for immediate government action to eliminate any potential conflicts of interest in SEBI's investigation of the Adani Group. They have also reiterated their demand for a Joint Parliamentary Committee probe into the matter and have called for the removal of Madhabi Puri Buch as SEBI chief.
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