In a recent development, US-based activist short seller Hindenburg Research LLC has made serious allegations against SEBI Chairperson Madhabi Puri Buch and her husband, Dhaval Buch. In a report published on August 10, 2024, Hindenburg claimed that the couple held stakes in two offshore funds linked to what it described as the “Adani money siphoning scandal.” The report is said to be based on whistleblower documents that reveal these connections.
The report references an earlier investigation by the Financial Times, which uncovered that Indian Infoline (IIFL), a publicly listed wealth management firm now known as 360 One, managed the Global Dynamic Opportunities Fund (GDOF). This Bermuda-based fund, according to the investigation, was used by associates of the Adani Group to accumulate and trade significant positions in the conglomerate’s shares.
Hindenburg’s report goes further to allege that Madhabi Puri Buch and her husband owned concealed stakes in these very offshore Bermuda and Mauritius funds. These funds, the report claims, were part of a complex financial structure associated with Vinod Adani, a key figure in the Adani Group.
According to the report, a declaration of funds signed by a principal at IIFL indicates that the Buchs’ investment source was “salary,” with their combined net worth estimated at $10 million. Additionally, the report highlights a letter sent by Dhaval Buch to Mauritius fund administrator Trident Trust on March 22, 2017, just weeks before Madhabi Puri Buch’s appointment as a SEBI whole-time member. In the letter, Dhaval Buch allegedly requested to be the “sole person authorised to operate the Accounts,” a move that the report suggests was aimed at transferring assets out of his wife’s name before her politically sensitive appointment.
These allegations have sparked widespread attention and raised critical questions about the integrity of financial oversight in India. As the story unfolds, the implications for both the SEBI Chairperson and the broader regulatory environment are expected to be closely scrutinized.
