Buch Couple Responds to Hindenburg Report, Clarifies SEBI Investment Timeline

On Sunday, SEBI Chairperson Madhabi Puri Buch and her husband Dhaval Buch issued a detailed statement addressing allegations made by U.S. short-seller Hindenburg. In its latest report, Hindenburg alleged links between the Adani Group and SEBI Chairperson Madhabi Puri Buch, claiming that documents obtained from whistleblowers indicate offshore entities involved in the Adani money-siphoning scandal had connections to Buch. The couple clarified that their investment in the fund occurred two years before Madhabi joined SEBI.

Investment Made Prior to SEBI Appointment

The Buch couple explained that they invested in the IPE Plus Fund 1, managed by 360 One Asset & Wealth Management (formerly IIFL Wealth Management), in 2015—two years before Madhabi Puri Buch joined SEBI as a full-time member. At the time of the investment, both Madhabi and Dhaval were living in Singapore as private citizens.

The decision to invest in the fund was based on their trust in the Chief Investment Officer, Anil Ahuja, who is a longtime friend of Dhaval Buch from school and IIT Delhi. Ahuja has had a distinguished investment career, having held positions at Citibank, JP Morgan, and 3i Group Plc.

Rejection of Allegations

In their statement, SEBI Chairperson Madhabi Puri Buch and Dhaval Buch categorically denied the allegations made by Hindenburg, calling them baseless and without merit. “Our lives and finances are an open book,” they stated, emphasizing that all necessary disclosures had been made to SEBI over the years.

SEBI’s Response to Hindenburg Report

SEBI also issued a statement in response to the Hindenburg Research report. SEBI noted that the report claims, among other things, that SEBI has not taken any action against the Adani Group and questions SEBI’s issuance of a show-cause notice to Hindenburg Research on June 27, 2024. SEBI clarified that it has thoroughly investigated the allegations against the Adani Group raised by Hindenburg Research.

The Supreme Court, in its order dated January 3, 2024, acknowledged that SEBI had completed 22 out of 24 investigations into the Adani Group. Since then, an additional investigation was completed in March 2024, with one remaining investigation nearing completion. During the ongoing investigation, SEBI has issued over 100 subpoenas, approximately 1,100 letters and emails requesting information, and examined more than 300 documents totaling around 12,000 pages.

Hindenburg’s report, released on Saturday, claimed that whistleblower documents revealed that Madhabi Buch and her husband Dhaval Buch opened an account with IPE Plus Fund 1 in Singapore on June 5, 2015, with a total investment estimated at $10 million. Hindenburg alleged that the offshore Mauritius fund was established by a director of the Adani Group through India Infoline and is registered in the tax haven of Mauritius.