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The Congress party has leveled serious allegations against Securities and Exchange Board of India (SEBI) chief Madhabi Puri Buch, claiming she earned crores of rupees from Mahindra & Mahindra, Dr Reddy's and other listed companies while holding the top position at the country's market regulator. The party's press briefing on Tuesday brought to light details of Buch's advisory firm, Agora Private Limited, which allegedly generated a revenue of Rs 2.95 crore between 2016-2024. This revelation comes amidst a storm of controversy surrounding Buch's past financial dealings and potential conflicts of interest.
According to Congress, Agora's clientele included prominent companies such as Mahindra and Mahindra Limited, Dr. Reddy’s, Pidilite, ICICI, Sembcorp, Visu Leasing & Finance. The party asserts that any income received by Agora Advisory Private Limited from these companies constitutes a conflict of interest and violates Section 5 of SEBI's Code on Conflict of Interest for Members of the Board. Notably, the Mahindra & Mahindra Group alone contributed Rs 2.59 crore to Agora, accounting for a staggering 88 percent of the total revenue.
The allegations extend further to Buch's husband, Dhaval Buch, who allegedly received Rs 4.78 crore in personal income from M&M. This raises serious concerns regarding potential bias and conflicts of interest, especially considering his wife's position at SEBI and her involvement in adjudicating cases related to the same group. The Congress claims that this constitutes a clear case of conflict of interest, highlighting the potential for undue influence within SEBI.
These accusations come amidst ongoing scrutiny of Buch's financial ties to various companies. Last month, the US-based shortseller Hindenburg Research released a report highlighting two consultancy firms operated by Buch and her husband - Singapore-based Agora Partners and India-based Agora Advisory. While Buch claimed to have disclosed her business interests to SEBI and stated that her husband used these firms for his consulting business after retiring from Unilever in 2019, Hindenburg's report contradicted this claim. Based on Singapore company records, Hindenburg revealed that Buch transferred all her shares in Agora Partners to her husband in March 2022. However, company records for the financial year ending March 2024 indicate that Buch still holds shares in the Indian consulting firm.
Subhash Chandra Garg, a former top bureaucrat and SEBI board member during Buch's tenure, described her continued ownership of Agora Advisory and its ongoing business operations as a 'very serious' breach of conduct. He argued that Buch should not have been allowed to maintain ownership of the firm, even after making disclosures, emphasizing the potential for bias and compromising her position at SEBI.
The Congress's allegations are not just a political attack. They raise significant concerns about the integrity and independence of SEBI, an institution tasked with regulating India's capital markets. The allegations, if proven, would have serious implications for investor confidence and the fairness of the Indian financial system. It remains to be seen how SEBI and Buch will address these allegations, which have the potential to shake the foundations of India's financial regulatory landscape.
Source: Madhabi Puri via Agora earned crores from M&M, ICICI, Dr. Reddy's & 3 other listed cos: Congress