Congress Accuses Sebi Chairperson Madhabi Puri Buch Over Earnings From Advisory Firms

Congress leader Pawan Khera on Tuesday levelled serious allegations against Securities and Exchange Board of India (Sebi) Chairperson Madhabi Puri Buch, accusing her of earning crores through her advisory firm, Agora Private, even after taking office at Sebi. Khera claimed that contrary to Buch’s statement that her advisory company became dormant when she took office, Agora continued to operate and earned Rs 2.95 crore from 2016 to 2024.

In a press briefing, Khera highlighted that Agora’s clients include major listed companies like Mahindra & Mahindra, Dr. Reddy’s, Pidilite, ICICI, Sembcorp, and Visu Leasing & Finance. He emphasised that the payments made to Agora, while Buch was a member of Sebi’s board, constitute a conflict of interest and violate Section 5 of Sebi’s code on conflict of interest for members of the board.

"Of the total Rs 2.95 crore received by Agora Advisory, Rs 2.59 crore came from Mahindra & Mahindra alone, accounting for 88 per cent of the company’s earnings," Congress alleged. The party also pointed out that Buch’s husband, Dhaval Buch, earned Rs 4.78 crore from Mahindra & Mahindra in a personal capacity, raising further concerns about a potential conflict of interest.

Congress further alleged that this income came during a time when Buch, in her role as a whole-time member of Sebi, was overseeing cases involving the same companies. "This is a clear violation of Sebi’s conflict of interest norms," Khera said.

The controversy deepened last month when US-based short-seller Hindenburg research highlighted that Buch and her husband operated two consultancy firms Singapore-based Agora Partners and India-based Agora Advisory. According to Hindenburg, Buch transferred her shares in Agora Partners to her husband in March 2022, just before taking the top role at Sebi. However, Congress and other critics pointed out that Buch still holds shares in Agora Advisory, the Indian consultancy firm, based on financial filings from the fiscal year ending March 2024.

Public documents from the Registrar of Companies, reviewed by Reuters, revealed that Agora Advisory earned Rs 37.1 million (USD 442,025) between 2017 and 2024, during Buch’s tenure at Sebi. While Buch defended herself, stating that the firms were disclosed to Sebi and that her husband used them for consultancy work after his retirement from Unilever in 2019, the revelations have sparked criticism from various quarters.

Subhash Chandra Garg, a former top bureaucrat and Sebi board member during Buch’s tenure, described the situation as a ‘very serious breach of conduct,’ arguing that Buch’s continued ownership of the firm, even after disclosing it, was unjustifiable. Garg stated that Buch’s position as Sebi Chairperson had become ‘untenable’ due to these revelations.

This came at a time when Buch is already facing allegations of conflict of interest related to Sebi’s investigation into Hindenburg’s report on the Adani Group. The recent accusations are likely to further complicate her position at the regulator.