The SEBI Chairperson Madhabi Puri Buch and her husband Dhaval Buch issued a detailed statement with a point-by-point rebuttal on the recent allegations by US short-seller Hindenburg Research. They stated that “Hindenburg has been served a show cause notice for a variety of violations in India. It is unfortunate that instead of replying to the Show Cause Notice, they have chosen to attack the credibility of the SEBI and attempt character assassination of the SEBI Chairperson.” The statement went on to say that “there are certain allegations made against SEBI which would be addressed by the institution independently. We would like to address the issues pertaining to us in our personal capacity.” 

All SEBI regulations approved by Board not chairperson

One of the key references in the Hindenburg report was with regards to SEBI decisions and approvals, especially the REIT Industry. Responding to that the statement said that in the past two years, “SEBI has issued more than 300 circulars (including “Ease of Doing Business” initiatives in line with the developmental mandate of SEBI) across the entire market eco-system. All regulations of SEBI are approved by its Board (and not by its Chairperson) after extensive public consultation. Insinuations that a handful of these matters related to the REIT industry were favours to any specific party are malicious and motivated.”

Dhaval Buch’s appointment to Blackstone Private Equity

Dhaval’s appointment, in 2019, as Senior Advisor to Blackstone Private Equity was another point of discussion. Responding to this the Buchs’ statement detailed that his appointment was ” on account of his deep expertise in Supply Chain management. Thus his appointment pre-dates Madhabi’s appointment as SEBI Chairperson. This appointment has been in the public domain ever since. At no time has Dhaval been associated with the Real Estate side of Blackstone. On his appointment, the Blackstone Group was immediately added to Madhabi’s recusal list maintained with SEBI.” 

PIL filed to disqualify 99 Congress MPs over alleged bribery in ‘Ghar Ghar Guarantee Scheme’ Abhishek Bachchan responds to divorce rumors with Aishwarya Hindenburg levels allegations against SEBI Chairperson After Adanis, who’s Hindenburg’s next target? Short-seller says ‘something big soon India’

Reference to stake in offshore Singapore firm

Responding to the Hindenburg report referring to Buch’s holding in offshore Singapore firm, the statement clarified that, “the two consulting companies set up by Madhabi during her stay in Singapore, one in India and one in Singapore, became immediately dormant on her appointment with SEBI. These companies (and her shareholding in them) were explicitly part of her disclosures to SEBI.”

Moreover, they added in the statement that after Dhaval Buch retired from Unilever in 2019, “he started his own consultancy practice through these companies. Dhaval’s deep expertise in Supply Chain allowed him to work with prominent clients in the Indian industry. Thus, linking accruals in these companies to Madhabi’s current government salary is malicious.”

Additionally, “When the shareholding of the Singapore entity moved to Dhaval, this was once again disclosed, not just to SEBI, but also to the Singapore authorities and the Indian tax authorities.”

Investment in the fund referred made well before Buch’s appointment as SEBI Chief

Issuing clarification on the investment in the fund referred to in the Hindenburg report, the statement detailed that “it was made in 2015 when they were both private citizens living in Singapore and almost 2 years before Madhabi joined SEBI, even as a Whole Time Member.

“The decision to invest in this fund was because the Chief Investment Officer, Anil Ahuja, is Dhaval’s childhood friend from school and IIT Delhi and, being an ex-employee of Citibank, J.P. Morgan and 3i Group plc, had many decades of a strong investing career. The fact that these were the drivers of the investment decision is borne out by the fact that when, in 2018, Ahuja, left his position as CIO of the fund, we redeemed the investment in that fund. 

“As confirmed by Ahuja, at no point in time did the fund invest in any bond, equity, or derivative of any Adani group company.” 

The statement moreover, detailed out academic and professional achievements of both Madhapuri Buch and Dhaval Buch and stated that, “Insinuations about their net worth and investments referencing Madhabi’s current government salary is malicious and motivated.”