Madhabi Puri Buch, the first woman chairperson of the Securities and Exchange Board of India (Sebi), has found herself embroiled in a web of controversies.
Known for her strong leadership and reformative stance, Buch is now grappling with a series of accusations that threaten both her legacy and Sebi’s credibility as the market regulator. The accusations against the Sebi chief range from alleged financial misconduct and conflicts of interest to claims of a toxic work environment.
As these allegations pile up, it’s not just external forces like opposition parties or explosive short-seller reports causing trouble. Internal cracks within Sebi are also starting to show, intensifying the pressure on her leadership.
It all started when US-based short-seller Hindenburg Research released a report, accusing Buch and her husband, Dhaval Buch, of financial misconduct.
The allegations centered around investments in offshore funds linked to the Adani Group, which has been under Sebi's investigation.
According to Hindenburg’s claims, the Buchs had ties to funds based in tax havens like Bermuda and Mauritius, adding layers of suspicion about the regulator's impartiality in the Adani probe.
The Hindenburg report, released in August 2024, hinted that Buch had a personal stake in funds controlled by Vinod Adani, the brother of the conglomerate's founder.
Moreover, the report alleged that weeks before her appointment as Sebi chairperson, Buch's husband sought to gain sole control over their offshore investments—a move that fuelled the narrative of conflict of interest.
Hindenburg went further, claiming that while serving as Sebi’s Whole-time Member, Buch had used her personal email to conduct business related to sensitive financial dealings.
Both Madhabi and Dhaval Buch immediately denied the accusations, calling them baseless and an attempt at character assassination.
In a statement, they clarified that all their financial disclosures were made in accordance with Sebi regulations and that the investments highlighted by Hindenburg were made while they were private citizens in Singapore, long before her Sebi tenure.
"In the context of allegations made in the Hindenburg Report dated August 10, 2024, against us, we would like to state that we strongly deny the baseless allegations and insinuations made in the report. The same is devoid of any truth. Our life and finances are an open book," it said.
But it wasn't just Hindenburg’s allegations that Buch had to face. An even more personal battle was brewing.
On September 2, 2024, Congress leader Pawan Khera accused her of receiving income from ICICI Bank after she took charge of Sebi, directly violating the regulator's conflict-of-interest norms.
Citing documents, Khera claimed that Buch received nearly Rs 17 crore in salary from ICICI Bank between 2017 and 2024—a large sum that has sparked concerns about potential financial ties during her tenure as Sebi chief.
The opposition’s attack gained further momentum, claiming Buch had earned rental income from Carol Info Services Ltd, a company linked to Wockhardt Ltd., which was under Sebi investigation.
The Congress has painted this as a direct breach of ethics, with Khera going as far as to label it a case of “out-and-out corruption.”
Though ICICI Bank and Wockhardt dismissed the allegations levelled by the Congress, Buch’s has remained silent on these developments.
Buch’s troubles didn't stop there. Sebi’s own house was not in order.
In August, an anonymous letter titled "Grievances Of Sebi Officers - A Call For Respect" surfaced, detailing the grievances of Sebi employees about a toxic work culture under Buch's leadership.
The letter, signed by 500 Sebi employees, alleged that Buch’s management style had taken a harsh turn, accusing her of creating an environment filled with public humiliation, micromanagement, and unrealistic targets.
The letter, though anonymous, echoed the frustrations of many, hinting at widespread discontent within the regulator.
Sebi's top management dismissed the allegations, describing the letter as a piece of 'mischief' from external sources. They contended that the email was unofficial and sent anonymously, thus not reflecting the views or issues of the organisation.
The market regulator’s response to the internal unrest was lukewarm at best.
And the damage seems to be done already—accusations of a toxic environment only served to bolster the narrative of an embattled leader losing control.
Sebi employees, while demanding a pay hike, were also grappling with the introduction of new performance evaluation systems that seemed to place them under even tighter scrutiny.
In the face of all this, Buch’s leadership at Sebi has encountered some turbulence, with questions surrounding transparency, conflicts of interest, and management ethics intensifying.
The growing controversy has now reached the corridors of Parliament. The Public Accounts Committee (PAC) is reportedly considering summoning Buch for a performance review of regulatory bodies.
The committee, headed by Congress leader K.C. Venugopal, aims to scrutinise Sebi’s handling of recent controversies, particularly the Adani investigation and Buch’s alleged financial conflicts.
Under mounting external and internal pressures, the ultimate test will be whether Madhabi Puri Buch can overcome these challenges and emerge stronger. Only time will tell.
