'Character assassination': Sebi chief Madhabi Buch dismisses Hindenburg charge, says 'finances are open book'

Sebi Chairperson Madhabi Puri Buch has dismissed the allegations made by Hindenburg Research, describing them as "baseless" and an attempt at "character assassination." 

The U.S.-based short-seller had accused Buch of holding a stake in offshore entities tied to Adani’s alleged financial misconduct—a charge she has strongly refuted.

In a joint statement with her husband, Dhaval Buch, the Sebi chairperson declared their willingness to disclose all financial records. "Our life and finances are an open book," they stated, underscoring that all necessary disclosures had been provided to Sebi over the years. The Buchs also expressed their readiness to submit any additional financial documents to any relevant authority, including those from their time as private citizens.

Hindenburg's allegations, which emerged in a report dated August 10, came after Sebi had taken enforcement action and issued a show cause notice to the short-seller. 

The Buchs suggested that Hindenburg’s claims were a retaliatory response, aimed at undermining the credibility of Sebi. "It is unfortunate that Hindenburg Research, against whom SEBI has taken enforcement action and issued a show cause notice, has chosen to attempt character assassination in response to the same," their statement read.

Despite the gravity of the accusations, the Buchs remained firm, dismissing the report as "devoid of any truth." In a bid for complete transparency, Buch announced that they would be issuing a detailed statement in due course.

What Hindenberg has alleged against the Buchs

• Offshore fund links: Buch and her husband allegedly held stakes in funds tied to the Adani episode, raising conflict of interest concerns.
• Opaque finances: Buch owned a Singapore consulting firm during her SEBI tenure, later transferred to her husband, with undisclosed financials.
• Blackstone-REIT link: Buch’s husband advised Blackstone while SEBI approved REIT regulations favoring the firm, suggesting a conflict of interest.
• Consulting revenue: Buch holds a 99% stake in Agora Advisory, which earned significant revenue, raising transparency issues.

Joint statement by Buch and husband Dhaval

In the context of allegations made in the Hindenburg Report dated August 10,2024 against us, we would like to state that we strongly deny the baseless allegations and insinuations made in the report. The same are devoid of any truth. Our life and finances are an open book.  All disclosures as required have already been furnished to SEBI over the years. We have no hesitation in disclosing any and all financial documents, including those that relate to the period when we were strictly private citizens, to any and every authority that may seek them. Further, in the interest of complete transparency, we would be issuing a detailed statement in due course.

It is unfortunate that Hindenburg Research against whom SEBI has taken an Enforcement action and issued a show cause notice has chosen to attempt character assassination in response to the same.