SEBI Chairperson Madhabi Puri Buch gets clean chit from the government! Hindenburg had made allegations, news quoting government sources

The investigation into the allegations against Securities and Exchange Board of India (SEBI) Chairperson Madhabi Puri Buch found nothing untoward, government sources told India Today, adding that she will complete her term which ends in February 2025. Used to be.Sources said the probe was necessitated after US short-seller Hindenburg Research and the Congress party leveled serious allegations of conflict of interest and financial misconduct against the SEBI chief.Butch was investigated over allegations of conflict of interest and financial misconduct.
 

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The controversy started when Hindenburg Research questioned the silence of SEBI Chairman Madhabi Puri Buch on allegations of conflict of interest and financial misconduct. Hindenburg suggested that Butch may have undeclared financial ties to Adani Group, which is also being investigated.
In response to the allegations, Madhabi Puri Buch and her husband Dhaval Buch said that the claims made in the Hindenburg Report are “baseless” and “without any merit”. He highlighted that his financial records were transparent and described the allegations as an attempt at “character assassination”.
Buch later issued a detailed joint statement refuting the claims made by Hindenburg Research. He clarified that his investment in the fund, which Hindenburg claimed was linked to the alleged “Adani stock manipulation”, was made two years before Madhabi joined SEBI.
The controversy escalated further when the Congress party intensified its attacks. On September 2, 2024, Congress leader Pawan Kheda accused Buch of receiving income from ICICI Bank after taking charge of SEBI, a violation of the regulator’s conflict of interest norms.
Citing documents, Khera claimed that Butch received a salary of around Rs 17 crore from ICICI Bank between 2017 and 2024, raising concerns about possible financial ties during his tenure. Additionally, Khera alleged that Butch received rental income from Carroll Info Services Limited, a company linked to Wockhardt Limited, which is under SEBI investigation.
The Congress Party described the situation as “outright corruption”, highlighting the seriousness of the allegations.Kheda also claimed that Butch owned 99% stake in Agora Advisory Pvt Ltd, which provided consultancy services to companies like Mahindra & Mahindra, while he was deciding cases related to them. Responding to the allegations, the companies involved, including Mahindra & Mahindra and Dr. Reddy’s Laboratories, denied the claims of conflict of interest.
 

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Mahindra & Mahindra said Dhawal Buch’s consulting services were based on his expertise, and the payments were made before Madhabi’s appointment as SEBI chairman. Dr Reddy’s Laboratories clarified that their association with Dhawal Buch was not related to any SEBI investigation.
In response to the growing scrutiny, the Parliamentary Public Accounts Committee (PAC) was reportedly probing allegations against the SEBI chief. However, sources have now indicated that the investigation has cleared Butch of any wrongdoing, confirming that no action will be taken against him or his family.

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