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The ongoing controversy surrounding Securities and Exchange Board of India (SEBI) chairperson Madhabi Puri Buch has escalated, with Hindenburg Research adding its voice to the chorus of accusations. This comes just a day after the Congress party alleged that Ms. Buch holds a 99% stake in Agora Advisory, a consultancy firm that provided services to entities regulated by SEBI. Hindenburg, known for its short-selling investigations, echoed these concerns, pointing to the potential conflicts of interest arising from Ms. Buch's alleged ownership of Agora Advisory. The firm highlighted that Agora Advisory served listed entities including Mahindra and Mahindra, ICICI Bank, Dr. Reddy's, and Pidilite, while Ms. Buch was a whole-time member of SEBI.
Hindenburg's allegations, posted on X (formerly Twitter), specifically mention Agora Advisory's services to listed entities during Ms. Buch's time at SEBI. This raises concerns about whether Ms. Buch used her position to benefit her own business interests. The Congress, in its own press briefing, had also alleged that Ms. Buch's spouse, Dhaval Buch, received income from Mahindra and Mahindra after his retirement. While Dr. Reddy's, Pidilite, and Mahindra and Mahindra have denied the allegations regarding Agora Advisory, the controversy has sparked a debate about the ethical standards and transparency within India's regulatory bodies.
The Congress, expressing concerns about the integrity of the Indian market, has called for an independent probe into the allegations against Ms. Buch. They have further emphasized the need for addressing the perceived conflicts of interest and ensuring a fair and transparent regulatory environment. Hindenburg Research, known for its investigations into corporate wrongdoing, has amplified the concerns raised by the Congress, further raising the pressure on Ms. Buch and SEBI. The allegations, if proven, could have significant consequences for the reputation of SEBI and the Indian financial markets. The public awaits a clear and comprehensive response from Ms. Buch and SEBI regarding these serious accusations.
Source: Hindenburg joins Congress’ allegations on SEBI chairperson Madhabi Puri Buch