US-based short seller Hindenburg  launched fresh rounds of attacks on Sebi Chairperson Madhabi Puri Buch. Responding to the Sebi chief’s rebuttal on its research report, Hindenburg posted a series of tweets, asking her to reveal the client lists.

The American short seller said, “SEBI Chairperson Madhabi Buch’s response to our report includes several important admissions and raises numerous new critical questions. Buch’s response now publicly confirms her investment in an obscure Bermuda/Mauritius fund structure, alongside money allegedly siphoned by Vinod Adani. She also confirmed the fund was run by a childhood friend of her husband, who at the time was an Adani director.”

Hindenburg further tweeted that the fact that Madhabi Buch remained personally invested in the same funds by the sponsor she was tasked with investing, is a ‘massive conflict of interest’.

“SEBI was tasked with investigating investment funds relating to the Adani matter, which would include funds Ms. Buch WAS PERSONALLY INVESTED IN and funds by the same sponsor which were specifically highlighted in our original report. This is obviously a massive conflict of interest.”

It alleged that the Sebi Chairperson remained 100% shareholder of Agora Partners Singapore till March 2022, owning it during her entire time as a SEBI Whole Time Member. It wrote, “Buch’s statement also claims that the two consulting companies she set up, including the Indian entity and the opaque Singaporean entity “became immediately dormant on her appointment with SEBI” in 2017, with her husband taking over starting in 2019. Per its latest shareholding list as of March 31st, 2024, Agora Advisory Limited (India), is still 99% owned by Madhabi Buch, not her husband. This entity is currently active and generating consulting revenue.”

“Furthermore, Buch remained a 100% shareholder of Agora Partners Singapore until March 16th, 2022, per Singaporean records, owning it during her entire time as a SEBI Whole Time Member. She only transferred her shares into her husband’s name 2 weeks after her appointment as SEBI Chairperson,” it added.

In the series of tweets, Hindenburg alleged that Buch used her personal email for conducting business using her husband’s at the same time as she was serving as a Whole Time Member of SEBI

“The Singaporean consulting entity she set up doesn’t publicly report its financials like revenue or profit so it’s impossible to see how much money this entity has earned during her time at SEBI. The Indian entity, still 99% owned by the SEBI Chairperson, has generated INR 23.985 million (U.S. ~$312,000) in revenue (i.e. consulting) during the financial years (‘22, ‘23, and ‘24), while she was serving as Chairperson, per its financial statements.  This is especially important given whistleblower documents showing that Buch used her personal email to do business using her husband’s name while serving as a Whole Time Member of SEBI.”

The US short seller also questions the investments and businesses that Buch might have engaged in her husband’s name while serving in Sebi.

“In 2017, weeks ahead of her appointment as SEBI Whole Time Member, she ensured the accounts with ties to Adani “be registered solely in the name of Dhaval Buch”, her husband, per whistleblower documents. Despite disclaiming control, a private email she sent a year into her SEBI term shows she redeemed stakes in the funds through her husband’s name, per the whistleblower documents. This raises the question: What other investments or business has the SEBI Chairperson engaged in through her husband’s name while serving in an official capacity?,” it said.

“Buch said her husband used the consulting entities starting in 2019 to transact with unnamed “prominent clients in the Indian industry”. Do these include clients SEBI is tasked with regulating? Buch’s statement promised a “commitment to complete transparency,” commented Hindenburg in its tweet.

Hindenburg also asked if the Sebi chief will publicly release the full list of consulting clients and comit to a transparent or public investigation into these issues.

“Given this, will she publicly release the full list of consulting clients and details of the engagements, both through the offshore Singaporean consulting firm, the Indian consulting firm and any other entity she or her husband may have an interest in? Finally, will the SEBI Chairperson commit to a full, transparent and public investigation into these issues?,” it added.