Madhabi Puri Buch's consulting firm illegally accepted payments from listed entities, alleges Hindenburg Research

Amid a barrage of serious allegations against Madhabi Puri Buch’s leadership at SEBI, including conflict of interest and misuse of power, the US-based research firm Hindenburg Research leveled a fresh set of charges on Wednesday. They accused a private consulting entity owned by Buch of accepting payments from multiple listed companies regulated by SEBI during her tenure as a whole-time member. The consulting entity, which is 99 percent owned by Buch and based in India, was mentioned in a post by Hindenburg Research on the microblogging site X (formerly Twitter).

New allegations have emerged that the private consulting entity, 99% owned by SEBI Chair Madhabi Buch, accepted payments from multiple listed companies regulated by SEBI during her time as SEBI Whole-Time Member.

The companies include: Mahindra & Mahindra, ICICI Bank, Dr.…

— Hindenburg Research (@HindenburgRes) September 11, 2024

Hindenburg alleged that Mahindra & Mahindra, ICICI Bank, Dr. Reddy’s Laboratories, and Pidilite Industries were among the companies that made payments to the consulting firm.

"These allegations pertain to Buch's Indian consulting entity; no details have emerged regarding her Singapore-based consulting entity," said Hindenburg Research. Their August 10 report had previously accused Buch and her husband, Dhaval Buch, of holding investments in offshore funds also used by the Adani Group—a claim the couple has categorically denied. The report also suggested a potential conflict of interest in her investigations into the conglomerate due to these investments.

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Hindenburg Research also questioned Buch’s "complete silence" on these pressing issues.

"Buch has maintained her silence for weeks on all emerging issues," Hindenburg wrote on Wednesday.

Many financial experts have raised serious concerns about Buch's conduct during her tenure at SEBI.

Last month, former Finance Secretary SC Garg stated in an exclusive interview with Zee Business that Buch should step down, as the recent developments are "not good for the reputation" of the country’s market regulator. He believes the government should investigate the matter closely.