The new report published by Hindenburg Research has put Madhabi Puri Buch, the chairperson of the Securities and Exchange Board of India (SEBI), at the centre of a growing controversy. Hindenburg has alleged that Madhabi Puri Buch and her husband Dhawal Buch were involved in offshore entities tied to the Adani Group's alleged money-siphoning activities. The couple also held stakes in obscure Bermuda and Mauritius funds, alleged the report.
![Image source: Hindenburg report Image source: Hindenburg report](https://img.theweek.in/content/dam/week/week/news/images/2024/8/11/Dhaval Buch SEBI chairperson report.jpg)
ALSO READ | Who is Madhabi Puri Buch, the SEBI chief allegedly involved in Adani scandal?
"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," said the report.
The report alleges that Blackstone has significant stakes in REITs in India and that the sector received a fillip during Madhabi’s time at SEBI’s helm.
![Image source: Hindenburg report Image source: Hindenburg report](https://img.theweek.in/content/dam/week/week/news/images/2024/8/11/Dhaval Buch SEBI chairperson Madhabi Puri.jpg)
FULL REPORT | What are REITs and why is the Hindenburg report using it to link Dhaval Buch, SEBI and Blackstone?
Here are five allegations highlighted against SEBI chief Madhabi Puri Buch in the latest document released by Hindenburg Research:
1. The Supreme Court said that SEBI had "Drawn a blank” in its investigations into who funded Adani's offshore shareholders. If SEBI really wanted to find the offshore fund holders, perhaps the SEBI chairperson could have started by looking in the mirror. We find it unsurprising that SEBI was reluctant to follow a trail that may have led to its own chairperson.
2. 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... On March 16th, 2022, two weeks after her appointment as SEBI chairperson, she quietly transferred the shares to her husband
![Image source: Hindenburg report Image source: Hindenburg report](https://img.theweek.in/content/dam/week/week/news/images/2024/8/11/Dhaval Buch SEBI chairperson husband scandal.jpg)
3. During Madhabi Buch's tenure as a whole time member at SEBI, her husband was appointed as a senior advisor to Blackstone in 2019 He had not worked for a fund, in real estate or capital markets before, per his LinkedIn profile
![Image source: Hindenburg report Image source: Hindenburg report](https://img.theweek.in/content/dam/week/week/news/images/2024/8/11/Dhaval Buch SEBI chairperson Madhabi (1).jpg)
4. During Dhaval Buch's time as advisor to Blackstone, SEBI has proposed, approved and facilitated major reit regulations changes...These include 7 consultation papers, 3 consolidated updates, 2 new regulatory frameworks and nomination rights for units, specifically benefiting private equity firms like Blackstone... During industry conferences, SEBI chairperson Madhabi Buch has touted REITS as her "Favourite products for the future" and urged investors to look "Positively" upon the asset class... While making those statements, she omitted to mention that Blackstone, who her husband advises, stands to gain significantly from the asset class
ALSO READ | Who is Dhaval Buch, SEBI chairperson Madhabi's husband linked to Adani scandal?
5. Madhabi Buch currently has a 99% stake in an Indian consulting business called Agora Advisory, where her husband is a director