National desk
12 September
Sandeep Dhand Ludhiana
Hindenburg Research, a well-known U.S. research and investment firm, has raised serious questions about SEBI Chairperson Madhavi Puri Buch’s silence regarding new allegations of misconduct and conflict of interest. The firm alleged that Buch, while serving as a full member of SEBI, accepted payments from several listed companies regulated by SEBI. According to Hindenburg, Buch’s privately-owned advisory firm received payments from companies like Mahindra & Mahindra, ICICI Bank, Dr. Reddy’s Laboratories, and Pidilite Industries. These payments, Hindenburg claims, could indicate a conflict of interest during her tenure at SEBI.
Hindenburg took to the social media platform X to highlight that Buch’s Indian advisory firm allegedly accepted these payments, though they have not yet provided details concerning Buch’s Singapore unit. The accusations have raised concerns about the integrity and transparency of the regulatory body.
In response to these allegations, Dr. Reddy’s Laboratories and Pidilite Industries have both clarified their positions. Dr. Reddy’s confirmed hiring Dhawal Buch, Madhavi Buch’s spouse, and acknowledged paying him Rs 6.58 lakh for his services but denied any conflict of interest. Pidilite also denied any involvement in an SEBI investigation and rejected any wrongdoing.
These allegations follow a previous claim by Hindenburg that Buch had opened an account with a wealth management company in Singapore in 2015, which has further fueled the controversy. The silence from SEBI and its chairperson on these matters has drawn criticism and demands for greater transparency.