Hindenburg Research alleges SEBI chief Madhabi Puri Buch had stake in obscure offshore entities linked to Adani

Hindenburg Research has put out a fresh report citing whistleblower documents that reportedly point to a connection between SEBI’s chairperson Madhabi Puri Buch, her husband Dhaval and certain offshore entities involved in the Adani money movement case.

According to the report, the whistleblower documents suggest that Buch and her husband may have opened an account with IPE Plus Fund 1 on June 5, 2015, in Singapore. The fund is reportedly registered in Mauritius, a tax haven.

The documents, reportedly signed by a principal at IIFL, indicate that the source of the investment is “salary” and estimate the couple’s net worth at $10 million. Hindenburg Research further alleged that the Mauritius-based fund was established by an Adani director through India Infoline. Hindenburg alleged that on March 22nd, 2017, just weeks ahead of her wife being appointed SEBI chairperson, Dhaval Buch wrote to the Mauritius fund administrator regarding his and his wife's investment in the fund.

"In the letter, Dhaval Buch requested to "be the sole person authorised to operate the Accounts", seemingly moving the assets out of his wife's name ahead of the politically sensitive appointment," it alleged.

The report highlights another instance involving Buch’s alleged connection to offshore funds. According to the report, Agora Partners Pte Ltd was registered in Singapore on March 27, 2013, as a “business and management consultancy,” based on a Singapore director search. At that time, Madhabi Buch was reportedly listed as the 100% shareholder.

She is said to have remained the sole shareholder until March 16, 2022, as per Singaporean records.

The report suggests that due to the potential political sensitivity of a perceived conflict of interest, she may have transferred her stake in Agora Partners to her husband, according to the share transfer details from Singapore.

Buch has dismissed the allegations, describing them as "baseless" and an attempt at "character assassination." In a joint statement with her husband, Dhaval Buch, the Sebi chairperson declared their willingness to disclose all financial records.

In January 2023, Hindenburg Research released a scathing report targeting the Adani Group, controlled by Gautam Adani. The timing of the report, just before Adani Enterprises' scheduled share sale, could not have been more detrimental as it swiftly resulted in an astonishing $86 billion plummet in the market capitalisation of Adani Group's stocks. This substantial decline in stock value subsequently prompted a substantial sell-off of the group's bonds listed abroad.

In May this year, shares of Adani Enterprises bounced back to levels last seen in January 2023, before the Hindenburg Research report triggered a sell-off in billionaire Gautam Adani's ports-to-power conglomerate.