SEBI chairperson Madhabi Buch | Photo: Francis Mascarenhas/Reuters
New Delhi: Securities and Exchange Board of India (SEBI) chief Madhabi Puri Buch has 99 per cent shareholding in a consultancy firm, which earned Rs 3.71 crore in seven years since she became a member of SEBI, Reuters reported. Citing public documents from India's Registrar of Companies, Reuters noted that Madhabi holding shares and gathering profit potentially violated SEBI's conflict of interest policy.
The firm Madhabi has shares as of March 31, and it was Agora Advisory Private Limited, Reuters says.
Earlier, the short-seller Hindenburg Research alleged that Madhabi, being the head of SEBI, had a massive conflict of interest in investigating the Adani group last year. This was because she and her husband have stakes in offshore funds linked to the Adhani group. The shot-seller had also cited documents to accuse Madhabi of owning 99 per cent shares in Agora Advisory.
As per the code of conflicts of interest of SEBI, its whole-time members shall not hold any other office of profit. The whole-time members are also prohibited from engaging in any other professional activity which entails receipt of salary or professional fees.
Hindenburg said in its August 10 report that Madhabi was a 100 per cent shareholder in a Singapore-based consultancy company called Agora Partners till March 26, 2022. This was two weeks after she became SEBI chair. She transferred her stake to her husband on the mentioned date.
Hindenburg also said that Agora Partners is exempt from disclosing how much revenue the firm earned, and therefore, the same is unknown. According to Reuters, Madhabi's shareholdings possibly violate SEBI's code of conflicts of interest for its board members.