Why SEBI Chief Madhabi Puri Buch's Ties To Blackstone Demand Closer Examination

Last year, Hindenburg’s report sparked a major controversy with its allegations against the Adani group which caused a sharp decline in the company’s stock prices. The Us-based short-seller on August 10 claimed that SEBI didn’t properly investigate these allegations due to potential conflicts of interest involving SEBI chairperson Madhabi Puri Buch and offshore funds connected to Adani.

Both the Adani Group and SEBI chairperson Madhabi Puri Buch have denied the allegations made by Hindenburg. However, questions remain about her connections with other companies including the American private equity giant Blackstone.

Buch joined SEBI as a whole-time member in April 2017 and later took over as its chief in March 2022. If she believed that the statements released by her and SEBI were sufficient to address the conflict of interest allegations made by Hindenburg, she was mistaken.

Buch mentioned that she recused herself from all Blackstone-related matters as SEBI chairperson, due to her husband, Dhaval Buch, being a senior adviser at Blackstone since July 2019. However, given Blackstone's significant investments in India her statement warrants closer examination.

“Blackstone is heavily invested in India. It is the promoter of many companies in India. That (Buch) has recused herself from Blackstone matters isn’t enough given the amount of investment they have in India," a veteran fund manager, speaking on condition of anonymity, told The Morning Context.

While Madhabi Buch has stepped back from all Blackstone-related matters, Blackstone still owns or holds significant stakes in several major companies,reported Morning Context. This includes Care Hospitals, IT services provider Mphasis, Aadhar Housing Finance, Indiabulls Housing Finance (now Sammaan Capital), and ASK Investment Managers, among others.

These companies are part of Blackstone Group's 50 billion dollars asset portfolio in India, which includes 30 billion dollars in real estate. Blackstone manages an extensive network of listed companies that fall under Buch's regulatory oversight.

For instance, Aadhar Housing Finance, supported by Blackstone, went public in May 2024 after SEBI approved its draft red herring prospectus in February. Additionally, during Buch's leadership, SEBI cleared the IPO of another company controlled by Blackstone. This raises the question: Has Buch fully recused herself from all matters involving companies in which Blackstone holds a stake?