In response to the allegations made by Hindenburg on August 10, 2024, we are issuing this detailed statement to reaffirm our commitment to transparency. We intend to address these allegations comprehensively, with a focus on the facts concerning our personal and professional lives. While certain issues involving SEBI will be addressed independently by the institution, we aim to clarify matters directly related to us.
Addressing Allegations Against SEBI
The allegations against SEBI will be independently investigated by the institution, ensuring that due process is followed. Our focus is to clarify the points that specifically concern us in a personal capacity. Transparency and honesty have always been our guiding principles, and we are committed to upholding these values.
Professional Backgrounds: A Foundation Built on Merit
- Madhabi Puri Buch is an esteemed alumna of IIM Ahmedabad, with over two decades of experience in the banking and financial services sectors, predominantly within the ICICI Group. Her extensive career is marked by dedication and significant contributions to the industry.
- Dhaval Buch, an alumnus of IIT Delhi, has enjoyed a distinguished 35-year career with Hindustan Unilever Limited in India and Unilever globally, where he served as part of the senior management team. His professional journey reflects a deep commitment to excellence and integrity. Both Madhabi and Dhaval have accrued their savings through legitimate means, including salaries, bonuses, and stock options. Any insinuations about their net worth or investments based on Madhabi’s current government salary are baseless and misleading.
Global Experience and Investment Decisions
- International Experience: From 2010 to 2019, Dhaval worked in London and Singapore with Unilever, gaining invaluable global experience.
- Singapore Stint: From 2011 to March 2017, Madhabi also worked in Singapore, first with a Private Equity firm and later as a consultant. These years were crucial in shaping their professional trajectories.
- Investment in Question: The investment referenced in the Hindenburg report was made in 2015 when both Madhabi and Dhaval were private citizens residing in Singapore. This was nearly two years before Madhabi assumed any role at SEBI. The decision to invest was based on the trust and expertise of Anil Ahuja, the Chief Investment Officer of the fund, who is a longtime friend and a seasoned investment professional.
- Redemption of Investment: When Mr. Ahuja left his position as CIO of the fund in 2018, we promptly redeemed our investment, further demonstrating that our decisions were driven by trust in his professional acumen.
- No Adani Group Investment: As confirmed by Mr. Ahuja, the fund in question did not invest in any bonds, equities, or derivatives related to the Adani Group. This statement directly refutes any connection between our investment and the Adani Group.
Professional Appointments and Public Disclosure
- Blackstone Private Equity: Dhaval’s appointment as a Senior Advisor to Blackstone Private Equity in 2019 was based on his deep expertise in Supply Chain management. This appointment was made well before Madhabi’s role as SEBI Chairperson and has been publicly known from the outset. Importantly, Dhaval has no association with Blackstone’s Real Estate division.
- SEBI Recusal List: Upon Dhaval’s appointment, the Blackstone Group was added to Madhabi’s recusal list at SEBI, adhering to the highest standards of transparency and integrity.
SEBI’s Regulatory Role and Madhabi’s Contributions
- Regulatory Initiatives: Over the past two years, SEBI has introduced over 300 circulars, including initiatives aimed at improving the ease of doing business in line with SEBI’s developmental mandate. All regulatory measures at SEBI are subject to approval by its Board after extensive public consultation, not by the Chairperson alone. Allegations that a few of these regulations were designed to favor specific parties are entirely unfounded.
- Consulting Firms: During Madhabi’s tenure in Singapore, she established two consulting companies—one in India and one in Singapore. Both firms became dormant immediately upon her appointment with SEBI. These companies, along with her shareholdings, were fully disclosed to SEBI.
Dhaval’s Consultancy Work and Full Compliance
- Consultancy Practice: After retiring from Unilever in 2019, Dhaval launched his own consultancy, leveraging his extensive expertise in Supply Chain management. Linking the earnings from these companies to Madhabi’s current government salary is not only incorrect but also malicious.
- Disclosure of Shareholding: When the shareholding of the Singapore entity was transferred to Dhaval, full disclosure was made not only to SEBI but also to the relevant authorities in Singapore and India, including tax authorities. This level of transparency underscores our commitment to ethical conduct.
Upholding Transparency and Institutional Integrity
- SEBI’s Institutional Mechanisms: SEBI has established robust mechanisms for disclosure and recusal, in accordance with the code of conduct applicable to its officers. All disclosures and recusals have been diligently followed, including those related to securities held or subsequently transferred.
- Response to Hindenburg Allegations: It is unfortunate that Hindenburg, instead of addressing the show cause notice issued for multiple violations in India, has chosen to attack the credibility of SEBI and engage in a character assassination of the SEBI Chairperson. These actions speak to their intent to deflect from the core issues at hand.
Conclusion: Commitment to Integrity
In conclusion, we reaffirm our commitment to transparency, ethical conduct, and integrity. The allegations made by Hindenburg are baseless and appear to be motivated by a desire to undermine the credibility of SEBI and its leadership. We trust that the facts presented here will clarify any misunderstandings and demonstrate our unwavering commitment to upholding the highest standards of professional and personal integrity.
