Hindenburg Research accused Securities and Exchange Board of India (Sebi) chairperson Madhabi Puri Buch of failing to respond to “emerging issues,” following allegations by the Congress of her holding a 99 per cent stake in a consultancy firm that provided services to Sebi-regulated entities.
In a post on X, the short-seller research firm highlighted that Agora Advisory, a consultancy firm allegedly owned by Buch, had offered services to major companies like Mahindra and Mahindra, ICICI Bank, Dr. Reddy’s, and Pidilite while she served as a whole-time member at Sebi. These allegations echoed the claims made by the Congress yesterday, which Mahindra and Mahindra, Dr. Reddy's, and Pidilite had denied in regulatory filings.
Hindenburg’s post also raised concerns about a Singapore-based consulting entity linked to Buch, pointing out her prolonged silence on these "emerging issues."
The controversy arose from Congress’s claim that Agora Advisory continued to operate despite Buch's earlier statement that the firm became dormant after her Sebi appointment. Additionally, Congress claimed that Buch's husband, Dhaval Buch, was receiving income from Mahindra and Mahindra post-retirement, a claim that Mahindra and Mahindra refuted.
The allegations raised serious questions about potential conflicts of interest and the overall integrity of Sebi’s regulatory processes under Buch's leadership.
