Hindenburg calls out SEBI chief for silence on serious allegations
What's the story
Hindenburg Research, a US-based short seller, has accused Securities and Exchange Board of India (SEBI) Chairperson Madhabi Puri Buch of not responding to allegations of conflict of interest.
These accusations were initially raised by the Congress party earlier this month.
The party claims that Buch's consultancy firm received nearly ₹3 crore from companies regulated by SEBI during her tenure as a whole-time member.
Accusations echoed
Hindenburg Research echoes Congress's allegations
Hindenburg Research has reiterated the Congress party's allegations against Buch.
The firm stated, "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 implicated in these allegations include Mahindra & Mahindra, ICICI Bank, Dr. Reddy's and Pidilite.
Twitter Post
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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.
— Hindenburg Research (@HindenburgRes) September 11, 2024
The companies include: Mahindra & Mahindra, ICICI Bank, Dr.…
Continued operations
Congress alleges Buch's firm continued operations during SEBI tenure
The Congress party has disputed Buch's claim that her advisory company, Agora Private Limited, ceased operations when she assumed office.
The party alleges that the company continued to provide services and generated revenue of ₹2.95 crore between 2016-2024.
It was further revealed that a significant portion of this revenue, ₹2.59 crore or 88%, came from Mahindra & Mahindra Group alone.
Spouse involved
Buch's husband also implicated in allegations
The Congress party has also implicated Dhaval Buch, SEBI chief's husband, in these allegations.
The party claims that he received an income of ₹4.78 crore from the Mahindra & Mahindra Group, in addition to the ₹2.95 crore earned by Agora Advisory Private Limited through its consultancy/advisory services.
Denials issued
Buchs deny allegations, Mahindra Group refutes claims
In response to these allegations, both Madhabi and her husband have issued a statement denying the accusations.
The Mahindra Group has also refuted these claims, stating that Dhaval Buch was hired for his expertize in supply chain management after retiring from Unilever in 2019.
The group further dismissed any connection between SEBI's settlement of their cases and the income received by Dhaval Buch.
Firm responses
Other firms deny allegations, defend engagements with Buch
Dr. Reddy's Laboratories has also denied the allegations, stating it engaged Dhaval for leadership coaching from October 2020 to April 2021 for a total remuneration of ₹6.58 lakh.
Pidilite Industries also clarified that they engaged with Dhaval for his services in supply chain and procurement.
These responses come in the wake of ongoing allegations against SEBI chairperson Madhabi and her husband.