In response to recent allegations made by Hindenburg on August 10, 2024, Madhabi Puri Buch and Dhaval Buch have issued a detailed statement, reaffirming their commitment to transparency and addressing the concerns raised.
The statement clarifies that while certain allegations have been made against the Securities and Exchange Board of India (SEBI), these will be handled independently by the institution. Madhabi and Dhaval Buch have focused on addressing issues relevant to their personal circumstances.
Madhabi Puri Buch, an alumnus of IIM Ahmedabad, boasts over two decades of experience in banking and financial services, primarily with the ICICI Group. Dhaval Buch, an alumnus of IIT Delhi, has a distinguished career spanning 35 years with Hindustan Unilever Limited in India and Unilever globally.
The Buchs assert that their savings have been accumulated through their professional careers, including salaries, bonuses, and stock options. They denounce insinuations about their net worth and investments, asserting that references to Madhabi’s current government salary are unfounded and malicious.
Dhaval Buch’s career took him to London and Singapore between 2010 and 2019, where he worked with Unilever. Madhabi Puri Buch lived and worked in Singapore from 2011 to March 2017, first as an employee of a Private Equity firm and later as a consultant.
The statement addresses concerns regarding an investment made in 2015 in a fund mentioned in the Hindenburg report. Both Madhabi and Dhaval were private citizens residing in Singapore at the time, and the investment occurred nearly two years before Madhabi’s appointment to SEBI. The decision to invest was influenced by their trust in the Chief Investment Officer, Mr. Anil Ahuja, who has a longstanding investment career. The Buchs highlight that the fund did not invest in any Adani group companies. They also note that they redeemed the investment in 2018 following Mr. Ahuja’s departure from the fund.
Dhaval Buch’s 2019 appointment as Senior Advisor to Blackstone Private Equity was based on his expertise in Supply Chain management and occurred before Madhabi was appointed SEBI Chairperson. His role has always been publicly known, and he has never been involved in Blackstone’s Real Estate side. Following his appointment, Blackstone was promptly added to Madhabi’s recusal list at SEBI.
SEBI has issued over 300 circulars in the past two years, addressing various market-related issues, including “Ease of Doing Business” initiatives. The statement asserts that all SEBI regulations are approved by its Board, not solely by the Chairperson, following thorough public consultation. Allegations that SEBI’s actions related to the REIT industry were favors to specific parties are described as malicious.
The two consulting companies established by Madhabi during her time in Singapore—one in India and one in Singapore—became dormant upon her SEBI appointment. These companies and her shareholdings were fully disclosed to SEBI. After Dhaval retired from Unilever in 2019, he began a consultancy practice utilizing his Supply Chain expertise. The statement refutes any claims linking the company’s earnings to Madhabi’s government salary.
All changes in the shareholding of the Singapore entity were disclosed to SEBI, as well as to Singapore and Indian tax authorities. SEBI’s disclosure and recusal norms, per its code of conduct, have been meticulously adhered to.
The Buchs expressed disappointment that Hindenburg, instead of addressing a show cause notice for various violations in India, has opted to question SEBI’s credibility and engage in character assassination of the SEBI Chairperson.
This statement seeks to address the concerns raised by Hindenburg while reaffirming the Buchs’ commitment to transparency and regulatory compliance.
Also Read: ‘A Red Herring’, Adani Group Releases Statement On Hindenburg Allegations
