Hindenburg Responds To Congress Allegations Against SEBI Chief; Here's What It Said

In a social media post on X (formerly Twitter), the short seller wrote, “Buch has maintained her complete silence for weeks on all of the emerging issues"

Responding to recent allegations from the opposition party Congress, the New York-based Hindenburg Research said on Wednesday that the Securities and Exchange Board of India (SEBI) chief Madhabi Puri Buch has remained silent for weeks regarding the emerging issues against her.

In a social media post on X (formerly Twitter), the short seller wrote, “Buch has maintained her complete silence for weeks on all of the emerging issues.”

Hindenburg added, "New allegations have emerged that the private consulting entity, 99 per cent owned by SEBI Chair Madhabi Buch, accepted payments from multiple listed companies regulated by SEBI during her time as SEBI Whole-Time Member. The companies include: Mahindra & Mahindra, ICICI Bank, Dr. Reddy’s and Pidilite. These allegations apply to Buch's Indian consulting entity with no details thus far on Buch's Singapore-based consulting entity."

The Congress party intensified its allegations against the SEBI Chairperson, claiming that a consultancy firm she promoted earned approximately Rs 3 crore, primarily from Mahindra & Mahindra (M&M), and alleging a "criminal conspiracy." At the time, Buch was serving as a whole-time SEBI member adjudicating cases involving the group, raising concerns about a conflict of interest under Section 5 of the SEBI code, according to the party. Buch reportedly owns 99 per cent of Agora Advisory Private Ltd, a consultancy firm that, according to the party, continues to provide advisory services despite Buch's claim that it became "immediately dormant" upon her SEBI appointment. 

Congress spokesperson Pawan Khera said, “This isn't just a case of wilful concealment; it's a case of wilful lying. In my last press conference, I had mentioned that it is not merely a conflict of interest, it is a case of corruption. Today's revelations will prove that it is not just corruption — it is a criminal conspiracy, absolutely brazen and shameless in its execution.”

Buch has not responded to these claims, while M&M has dismissed the allegations, saying, “We consider these allegations false and misleading in nature.”