In response to the allegations made by Hindenburg on August 10, 2024, Madhabi and Dhaval Buch issued a detailed statement addressing concerns related to their personal investments and professional roles. They clarified that Madhabi’s career in banking and financial services, along with Dhaval’s long tenure at Hindustan Unilever, led to their accumulated savings, which were maliciously questioned in relation to Madhabi’s current government salary. The couple also addressed their investment in a fund managed by a friend in 2015, emphasizing that this occurred while they were private citizens in Singapore, two years before Madhabi joined SEBI. They confirmed that the fund never invested in Adani group companies and that all their financial activities have been transparently disclosed to relevant authorities. Dhaval’s role at Blackstone was highlighted as unrelated to SEBI’s regulatory decisions, with strict recusal protocols followed by Madhabi. The statement concluded by criticizing Hindenburg for attacking SEBI’s credibility instead of responding to the show cause notice served to them for various violations in India. Also Read: SEBI statement on Hindenburg Research’s Report dated August 10, 2024
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SEBI Chief Madhabi Puri Buch and her husband Dhaval Buch releases a statement in the context of allegations made by Hindenburg on 10th Aug 2024 against them. Extract of the same is as below:
11th August 2024
In the context of allegations made by Hindenburg on 10th Aug 2024 against us, and in line with our commitment to complete transparency, we are issuing a detailed statement as below.
There are certain allegations made against SEBI which would be addressed by the Institution independently. We would like to address the issues pertaining to us in our personal capacity.
We would Like to state the following
1. Madhabi is an alumnus of IIM Ahmedabad and has had a corporate career of over two decades in banking and financial services, Largely in the ICICI Group,
2. Dhaval Buch is an alumnus of IIT Delhi and has had a corporate career of 35 years in Hindustan Unilever Limited in India and then in Unilever globally as part of its senior management team. During this long period, Madhabi and Dhaval have accrued their savings through their’ salaries, bonuses and stock options. Insinuations about their net worth and investments referencing Maclhabiis current government salary is malicious and motivated.
3. From 2010 to 2019, Dhaval Lived and worked in London and in Singapore – both with Unilever.
4. From 2011 to March 2017, Madhabi Lived and worked from Singapore, initially as an employee of a Private Equity firm and subsequently as a consultant.
5. The investment in the fund referred to in the Hindenburg report was made in 20-15 when they were both private citizens living in Singapore and almost 2 years before Madhabi joined SERI, even as a Whole Time Member.
6. The decision to invest in this fund was because the Chief Investment Officer, Mr Anil Ahuja, is Dhavalls childhood friend from school and IIT Delhi and, being an ex-employee of Citibank, J.P. Morgan and 3i group plc, had many decades of a strong investing career. The fact that these were the drivers of the investment decision is borne out by the fact that when, in 2018, Mr. Ahuja, left his position as CIO of the fund, we redeemed the investment in that fund,
7. As confirmed by Mr. Ahuja, at no point in time did the fund invest in any bond, equity, or derivative of any Adani group company.
8. Dhaval’s appointment, in 2019. as Senior Advisor to Blackstone Private Equity was on account of his deep expertise in Supply Chain management. Thus his appointment pre-dates Hadhabl’s appointment as SEBI Chairperson.. This appointment has been in the public domain ever since. At no time has Dhaval been associated with the Real Estate side of BlackstoDe.
9. On his appointment, the Blackstone Group was immediately added to Madhabi’s recusal list maintained with SERI.
10. Over the last two years, SEBI has issued more than 300 circulars (including “Ease of Doing Business” initiatives. in line with the developmental mandate of SEEM across the entire market eco-system. All regulations -of SEBI are approved by its Board (and Dot by its Chairperson) after extensive public consultation. Insinuations that a handful. of these matters related to the REIT industry were favours to any specific party are malicious and motivated.
11. The two consulting companies set up by Madhabi during her stay in Singapore, one in India and one in Singapore, became immediately dormant on her appointment with SEBI These companies (and her shareholding in therr0 were explicitly part of her disclosures to SEBI.
12. After Dhaval retired from Unilever in 2019, he started his own consultancy practice through these companies. Dhavat’s deep expertise in Supply Chain allowed him to work with prominent clients in the Indian industry. Thus. Linking accruals in these companies to Madhabi’s current government salary is malicious.
13. When the shareholding of the Singapore entity moved to Dhaval, this was once again disclosed, not just to SEBI, but also to the Singapore authorities and the Indian tax authorities.
14. SEBI has strong institutional mechanisms of disclosure and recusal norms as per the code of conduct applicable to its officers. Accordingly, all disclosures and recusals have been diligently followed, including disclosures of all securities held or subsequently transferred.
15. Hindenburg has been served a show cause notice for a variety of violations in India. It is unfortunate that instead of replying to the Show Cause Notice, they have chosen to attack the credibility of the SEBI and attempt character assassination of the SEBI Chairperson.
Dhaval Buch
Madhabi Puri Buch
Mumbai
August 11,, 2024
