Stung by the new Hindenburg Research report, Securities and Exchange Board of India (SEBI) chairperson Madhabi Puri Buch and her husband Dhaval Buch on Sunday accused the US-based short seller of attempting to attack the market regulator’s credibility and indulging in character assassination of its head.
Hindenburg in its fresh report on Saturday alleged that Madhabi and her husband had stake in obscure offshore entities used in Adani scandal. The new allegation came around 18 months after the Hindenburg claimed that the Adani Group had orchestrated the "largest con in corporate history", leading to a massive plunge in the conglomerate's market valuation.
In a detailed press statement on Sunday evening, the Buchs dismissed these allegations and said their investment in a fund promoted by IIFL Wealth Management was as Singapore-based private citizens, and made two years before Madhabi joined SEBI as a whole-time member.
Hindenburg had alleged that during Buch's time as senior advisor at Blackstone, while Madhabi Buch was a SEBI official, Blackstone sponsored Mindspace and Nexus Select Trust, the second and fourth REIT [Real Estate Investment Trust] received approval from the market regulator to go public.
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During Dhaval Buch's time as advisor to Blackstone, SEBI had proposed, approved and facilitated major REIT regulation changes, it alleged.
The Buchs, however, said at no time has Dhaval been associated with the Real Estate side of Blackstone.
“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,” they said.
They further said 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,” they added.
The Buchs’ statement further alleged that the Hindenburg had 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,” they said.