Who is Madhabi Puri Buch?
Madhabi Puri Buch is a former Chairperson of SEBI, which stands for the Securities and Exchange Board of India — the government body that regulates stock markets in India. Her job was to ensure that companies and investors followed the rules, and that no one cheated or manipulated the market.
She held this powerful position from March 2022 to February 2025 and had also served as a full-time member of SEBI earlier.
📢 What Was the Complaint All About?
In September 2024, Mahua Moitra, a Member of Parliament, filed a complaint with the Lokpal of India. The Lokpal is like an anti-corruption watchdog — it checks if top officials are involved in corruption or misuse of power.
Here’s a simple explanation of each allegation made against Buch:
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⚠️ Conflict of Interest: Investment Linked to Adani Group
It was alleged that Mrs. Buch and her husband, Dhaval Buch, invested a large amount of money in an offshore (foreign) investment fund.
This fund was said to be connected to the Adani Group, a major Indian business group.
At the same time, SEBI (under Buch’s leadership) was investigating the Adani Group for financial irregularities.
So, the concern was: “How can she fairly investigate a group when her own money is invested in it?” That’s what we call a conflict of interest.
📝 A “conflict of interest” means you’re supposed to make a fair decision, but your personal connections or money might influence you. -
💼 Undisclosed Business: Her Consultancy Firm Was Still Active
Buch had her own company called Agora Advisory Pvt. Ltd., which offered advice to big companies.
When she joined SEBI, she said her company had become inactive or “dormant” (not doing any business).
But the complaint said this was not true. In fact, her company earned ₹2.95 crore (29.5 million rupees) during the time she worked at SEBI.
This raised questions: Was she doing business on the side while working as a government regulator?
📝 Government rules often don’t allow top officials to run private businesses while in service — to avoid corruption or favoritism. -
💰 Quid Pro Quo: Favor in Return for Money?
The complaint accused her of receiving money in the form of consultancy fees and rent from big companies like:
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Mahindra & Mahindra (M&M)
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Blackstone Inc. (a major global investment company)
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Wockhardt (a pharmaceutical company)
These companies were also under SEBI’s lens — meaning SEBI was investigating them or involved in some decisions related to them.
The accusation was that she received payments in return for being lenient or giving them favorable treatment.
📝 “Quid pro quo” is a Latin phrase meaning “something in exchange for something.” In this case, it means: “You pay me; I’ll help you.” That’s illegal if done by a public official.
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📈 Selling ICICI Bank Stock Options for Personal Gain
Buch had previously worked at ICICI Bank, a major Indian bank.
Like many companies, ICICI gave her ESOPs (Employee Stock Options) — which are shares she could buy at a fixed low price and then sell at a profit.
She sold these shares between 2017 and 2024.
The issue? ICICI Bank was being looked at by SEBI during this period. Critics say she should not have sold these shares when she was part of the regulator investigating the bank.
📝 “ESOPs” are a type of employee benefit. Selling them while overseeing the company can create doubts about fairness. -
🪑 Failure to Step Aside: Pretending to Stay Away But Didn’t
Officials are expected to recuse (excuse) themselves from cases where they have a personal interest.
The complaint said Buch pretended to stay away from matters involving M&M, Blackstone, and Adani Group — but still had a role in key decisions.
This is serious because she was expected to be neutral and should not have interfered at all.
🏛️ So What Did the Lokpal Decide?
After reviewing the complaint and evidence, the Lokpal gave its decision in early 2025:
The complaint was dismissed.
Lokpal said the allegations were:
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“Untenable” — not strong or believable
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“Unsubstantiated” — no proper evidence was given
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“Bordering on frivolity” — meaning they seemed politically motivated or not serious
In short, the Lokpal did not find any wrongdoing by Madhabi Puri Buch.
📊 Summary Table: What Was Alleged and What Happened
| 🔎 Allegation | 💬 What It Meant in Simple Terms | 📌 Lokpal’s Verdict |
|---|---|---|
| Investment linked to Adani Group | Personal money possibly invested in a company under SEBI probe | No evidence of wrongdoing |
| Consultancy firm earnings | Earned ₹2.95 crore through her company while serving as SEBI Chair | No rule violation established |
| Money from M&M, Blackstone, Wockhardt | Allegedly got fees/rent from companies being reviewed by SEBI | Allegations not proved |
| Selling ICICI Bank shares | Sold stock options of a bank under SEBI lens | No improper action found |
| Did not truly recuse from decisions | Stayed involved in matters where she should have stepped back | No breach of rules |
🧾 Conclusion
This case sparked a big discussion about ethics, conflicts of interest, and accountability for powerful public officials. In the end, the official ruling cleared Madhabi Puri Buch of all charges. The Lokpal felt that the complaints had no solid proof and seemed politically motivated.
Still, the case showed the importance of transparency and strong checks in regulatory bodies — especially when so much public money and trust are involved.
Timeline: Key Events
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Mar 2022 – Buch appointed SEBI Chairperson
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Jan 2023 – SEBI probe into Adani begins
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Sep 2024 – Complaint filed with Lokpal
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Oct–Dec 2024 – Allegations debated in public, Buch responds
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Feb 2025 – Lokpal dismisses complaint
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Mar 2025 – Buch’s term as SEBI Chair ends