Hindenburg Accuses SEBI Chief of Conflict of Interest Amid Allegations

US-based short seller Hindenburg Research has accused SEBI and its chairperson, Madhabi Puri Buch, of conflict of interest and character assassination. The Buchs defend their investments, maintain their innocence, and term the allegations as baseless. Hindenburg has been served a show cause notice for various violations in India.

US-based short seller Hindenburg Research is attempting to tarnish the credibility of SEBI and engage in character assassination of its chairperson, Madhabi Puri Buch, according to a statement from Buch and her husband Dhaval.

On Sunday evening, the Buchs issued a detailed response to Hindenburg's allegations, clarifying that their investment in a fund promoted by IIFL Wealth Management was made as private citizens based in Singapore, two years before Madhabi joined SEBI as a whole-time member.

Dhaval, a senior advisor at Blackstone since 2019, stated he is not associated with the real estate side of the private equity firm. The statement also revealed that Madhabi’s two consulting companies became dormant immediately upon her SEBI appointment in 2017. They criticized Hindenburg for opting to attack SEBI’s credibility and Madhabi's character instead of responding to the show cause notice served for various violations in India.