The Crossbill Team
Madhabi Puri Buch’s ownership stake in a consultancy firm, which earned her revenue over the past seven years while she was concurrently serving as a whole-time member of the Securities and Exchange Board of India (SEBI), potentially violate the market regulator’s conflict of interest policy, Reuters reported on Friday (August 16).
Buch joined SEBI in 2017 and was appointed as its chairperson in March 2022. Over those seven years, Agora Advisory Pvt Ltd, in which Buch holds a 99% stake, generated revenue of 37.1 million rupees ($442,025), according to public documents from the Registrar of Companies analysed by Reuters.
Buch's shareholding potentially breach a 2008 SEBI policy that forbids officials from holding an office of profit or receiving salary or professional fees from other professional activities.
In its August 10 report, Hindenburg Research revealed that Buch was the sole owner of Agora Partners, a Singapore-based consultancy, until March 16, 2022—just two weeks after she became SEBI chair. On that date, she transferred her 100% stake to her husband. The US short-seller noted that Agora Partners' revenue remains undisclosed as the company is exempt from such reporting.
Buch established both Agora Advisory and Agora Partners prior to joining SEBI as a whole-time member in 2017. Reuters reported that her shareholdings could potentially violate SEBI’s conflict of interest code for its board members.
Subash Chandra Garg, a former economic affairs secretary who served on the SEBI board alongside Buch, told Reuters that there was “no justification” for her to continue owning the firm after joining the board. He asserted that Buch should not have been allowed to retain her stake, even with disclosures.
Garg further stated that Buch’s ownership of Agora Advisory and its ongoing earnings represented a “very serious” breach of conduct, making her position at SEBI “completely untenable.”
In response to Hindenburg’s report, Buch and her husband Dhaval have said that both Agora Advisory and Agora Partners “became immediately dormant” upon her SEBI appointment. They emphasized that these companies and their shareholdings were fully disclosed to SEBI.
According to Reuters, Buch has not clarified whether she received a waiver to maintain her shareholding in Agora Advisory.
Buch joined SEBI in 2017 and was appointed as its chairperson in March 2022. Over those seven years, Agora Advisory Pvt Ltd, in which Buch holds a 99% stake, generated revenue of 37.1 million rupees ($442,025), according to public documents from the Registrar of Companies analysed by Reuters.
Buch's shareholding potentially breach a 2008 SEBI policy that forbids officials from holding an office of profit or receiving salary or professional fees from other professional activities.
In its August 10 report, Hindenburg Research revealed that Buch was the sole owner of Agora Partners, a Singapore-based consultancy, until March 16, 2022—just two weeks after she became SEBI chair. On that date, she transferred her 100% stake to her husband. The US short-seller noted that Agora Partners' revenue remains undisclosed as the company is exempt from such reporting.
Buch established both Agora Advisory and Agora Partners prior to joining SEBI as a whole-time member in 2017. Reuters reported that her shareholdings could potentially violate SEBI’s conflict of interest code for its board members.
Subash Chandra Garg, a former economic affairs secretary who served on the SEBI board alongside Buch, told Reuters that there was “no justification” for her to continue owning the firm after joining the board. He asserted that Buch should not have been allowed to retain her stake, even with disclosures.
Garg further stated that Buch’s ownership of Agora Advisory and its ongoing earnings represented a “very serious” breach of conduct, making her position at SEBI “completely untenable.”
In response to Hindenburg’s report, Buch and her husband Dhaval have said that both Agora Advisory and Agora Partners “became immediately dormant” upon her SEBI appointment. They emphasized that these companies and their shareholdings were fully disclosed to SEBI.
According to Reuters, Buch has not clarified whether she received a waiver to maintain her shareholding in Agora Advisory.
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