Former SEBI chief Madhabi Puri Buch under investigation for alleged fraud charges.

Former SEBI chairperson Madhabi Puri Buch faced a series of allegations during her final year at the regulatory body, with accusations ranging from financial fraud to conflicts of interest. One major complaint involved the fraudulent listing of a company on the stock exchange, with claims that SEBI officials neglected their duties and enabled market manipulation and corporate fraud by allowing a company to list without meeting regulatory norms.

Buch’s leadership at SEBI became increasingly controversial as separate allegations surfaced, including conflict of interest issues related to the Adani Group investigation, earnings from her consultancy firm during her tenure, and corporate payments to her husband while she was in charge. Tuhin Kanta Pandey was subsequently appointed to replace her as SEBI chairperson for a three-year term.

The Adani Group connection stirred further controversy, with Buch and her husband being accused by Hindenburg Research of having undisclosed investments in offshore entities linked to Vinod Adani, the brother of Gautam Adani. It was alleged that SEBI, under Buch’s stewardship, failed to thoroughly investigate allegations of stock price manipulation and opaque foreign investments in Adani’s listed entities.

Amid these accusations, reports surfaced that Buch’s consultancy firm, Agora Advisory Private Limited, had earned substantial amounts during her time at SEBI, raising questions about compliance with regulatory disclosure norms. Buch clarified that her husband managed the firm after his retirement, and she had relinquished all operational roles before assuming her SEBI position. However, concerns over a possible conflict of interest persisted.

Additionally, allegations arose regarding payments Buch received from ICICI Bank post-retirement and financial transactions made by large corporate firms, such as Mahindra & Mahindra and Dr Reddy’s Laboratories, to her husband while she led SEBI. These payments raised suspicions of regulatory favoritism in exchange for financial benefits.

Apart from external controversies, Buch’s leadership at SEBI faced internal unrest, with over 1,000 employees staging a protest in September 2024. Employees alleged a toxic work culture, citing unprofessional behavior from top officials, stressful work environments, and excessive surveillance. SEBI refuted these claims, attributing the protest to external influences and asserting that an internal review found no evidence of systemic workplace toxicity.

In conclusion, the tenure of Madhabi Puri Buch as SEBI chairperson was marred by a series of allegations and controversies, ranging from regulatory violations to conflicts of interest. Despite her efforts to implement stricter regulations during her term, mounting accusations overshadowed her accomplishments and led to a tumultuous end to her leadership at the regulatory body.