Complied with all SEBI disclosure guidelines; allegations are false and malicious: Madhabi Puri Buch

Securities and Exchange Board of India (Sebi) Chief Madhabi Puri Buch stated on Friday that she had complied with all disclosure and recusal guidelines issued by the regulator.

In a personal statement, the head of India's market regulator declared that all allegations against her were completely false, malicious, and derogatory.

Buch has faced criticism from Hindenburg Research and India's opposition political parties for alleged conflicts of interest in investigations related to the Adani Group and other corporate entities.

Regarding the issue of conflict of interest with several listed companies, she stated that she has never dealt with any file involving Agora Advisory, Agora Partners, the Mahindra Group, Pidilite, Dr Reddy’s, Alvarez & Marsal, Sembcorp, Visu Leasing, or ICICI Bank at any stage after joining Sebi.

"Madhabi has complied with all the disclosure and recusal guidelines of SEBI, and in fact, maintained a proactive continuing recusal list with SEBI over and above the requirements under the guidelines," according to Reuters reported quoting her official statement.

In particular, Buch said she has not dealt with any regulatory matters related to her former employer ICICI Bank.

"Our income tax returns clearly have been obtained by adopting fraudulent means and illegally. This is a clear breach of not only our right to privacy (which is a fundamental right) but also a violation of the Income Tax Act," Buchs said in a statement.

Earlier this month, the main opposition Congress party alleged that the regulator head had a conflict of interest in dealings with ICICI, where she worked until 2011. The bank denied this in a statement.

It all began with a Hindenburg Research report, in which the US short-seller made several allegations against the market regulator and her husband, claiming they had invested in offshore funds linked to the Adanis.

The report also alleged a connection between Dhaval Buch’s time as an advisor to Blackstone and Sebi's involvement in proposing, approving, and facilitating major changes to REIT regulations. These changes included seven consultation papers, three consolidated updates, two new regulatory frameworks, and nomination rights for units, which the report suggested specifically benefited private equity firms like Blackstone.

Later, Congress party spokesperson Pawan Khera alleged that Buch continued to receive a salary from ICICI Bank while she was a member of Sebi, which he claimed constituted a serious breach of ethics and accountability in public service.

While neither Sebi nor Buch issued an official statement this time, ICICI Bank clarified that she did not receive any salary or ESOPs after her superannuation in October 2013, other than retiral benefits.

Joining the critics, Zee Group patriarch Subhash Chandra has also leveled several allegations against Buch and has even labeled her as "corrupt."

"This was the main reason for the (Zee-Sony) merger to set apart, and that is why I am questioning today that SEBI is supposed to protect the interest of minority shareholders, and she succeeded in pushing away Sony from getting merged with Zee," Chandra alleged.

In another press conference, the Congress party alleged that Dr Reddy's benefited from its association with Buch's husband, Dhaval, through Agora Advisory Private Limited.

Additionally, the principal opposition party claimed that Buch and her husband earned crores of rupees from Mahindra & Mahindra.

In response to allegations regarding rental income from a property owned by Madhabi and Dhaval, the couple claimed that the property had been leased out through standard procedures. However, it was later discovered that the lessee was associated with Wockhardt, a publicly traded company under investigation.

"Madhabi has not dealt with any files related to Wockhardt," Buchs said, adding that Sebi operates under a clear and well-defined delegation of powers, ensuring that investigations are handled in accordance with established procedures.

(With inputs from agencies)