SEBI Chairperson Madhabi Buch’s Alleged Conflicts of Interest in Adani Case

Recent investigations have raised serious concerns about the integrity of the Securities and Exchange Board of India (SEBI) in handling the Adani Group controversy. Evidence suggests that SEBI Chairperson Madhabi Buch and her husband, Dhaval Buch, may have had financial interests in the same offshore funds implicated in the Adani scandal, potentially undermining the regulator’s impartiality.

Documents indicate that Madhabi Buch and Dhaval Buch had investments in the Global Dynamic Opportunities Fund (GDOF), a Bermuda-based fund used by Vinod Adani, brother of Adani Group founder Gautam Adani, for allegedly illicit financial maneuvers. This fund was part of a complex offshore network, including the Mauritius-registered IPE Plus Fund 1, linked to the Adani cash siphoning scandal.

Whistleblower documents reveal that the Buchs first invested in IPE Plus Fund 1 in 2015, with Dhaval Buch requesting to manage these investments personally ahead of Madhabi Buch’s appointment as a SEBI Whole-Time Member in April 2017. Their investments, worth approximately $872,762, were reportedly managed through convoluted structures involving high-risk jurisdictions.

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Adding to the controversy, Madhabi Buch was appointed as SEBI Chairperson on March 1, 2022, shortly after transferring her shares in a Singaporean consulting firm, Agora Partners, to her husband. This move, coming two weeks before her SEBI Chairperson appointment, has raised concerns about potential conflicts of interest, especially given the firm’s exemption from disclosing financial statements.

During Buch’s tenure at SEBI, her husband Dhaval Buch was also appointed as a Senior Advisor to Blackstone, a major investor in India’s REIT market. Under Madhabi Buch’s leadership, SEBI has introduced several REIT regulations that appear to benefit Blackstone, raising questions about whether these changes were influenced by her husband’s position.

The revelations have sparked calls for a thorough investigation into SEBI’s handling of the Adani matter and Madhabi Buch’s role in it. Critics argue that these potential conflicts of interest could significantly impact SEBI’s credibility and its ability to address allegations of financial misconduct involving one of India’s largest conglomerates.

The ongoing scrutiny of SEBI’s actions and potential biases underscores the need for greater transparency and accountability in regulatory practices, as the public and stakeholders await decisive action on the Adani case.