At Sebi, Madhabi Buch doesn’t look at ICICI Securities, Blackstone matters

Madhabi Puri Buch has disclosed her previous employment at ICICI Securities and her husband's work at Blackstone to the market regulator, and does not involve herself in matters related to the two entities, a person aware of the matter said.

US short-seller Hindenburg Research on Saturday alleged Securities and Exchange Board of India (Sebi) chairperson Buch may have approved real estate investment trusts (REITs), an asset class where Blackstone was a major investor, given her husband Dhaval Buch's association with the private equity giant. In a statement last night, Buch denied Hindenburg's allegations.

Buch joined ICICI Bank in 1997. From 2006 to 2009, she was ICICI Bank’s executive director for consumer banking and corporate banking. From 2009 to 2011, she was CEO of ICICI Securities, which takes companies public for which Sebi approvals are required. She was also an executive director at ICICI Bank.

“Madhabi Buch can’t look at Blackstone and ICICI securities as part of her disclosures,” the person added. "She did not engage with Blackstone on REITs."

REIT regulations

Hindenburg Research said that "During Dhaval Buch’s time as advisor to Blackstone, Sebi has proposed, approved and facilitated major REIT regulations changes."

Embassy REIT, India's first REIT backed by Blackstone, launched its public offering on 1 April, 2019.

Also read: Mint Explainer: Why Sebi and Indian real estate investment trusts are in Hindenburg’s crossfire

Madhabi Buch’s husband Dhaval has been employed with Blackstone in Singapore as an operating advisor since 2019. 

Funds like Blackstone have been hiring operating partners and advisors to help them run their investments after making acquisitions. While investment partners lead the buyouts, operating partners help advise the company after the transactions are signed.

Blackstone hirings

In March 2015, Blackstone appointed former Hindustan Unilever chief executive officer and chairman Harish Manwani, who was also the global chief operating officer at parent Unilever, as the global executive advisor to Blackstone.

Also read | An emboldened Hindenburg’s record has gotten better as it goes after bigger guns

Manwani was hired to guide selected Blackstone portfolio firms and help in undertaking due diligence for investment opportunities, Blackstone said at the time.

Dhaval Buch, who was with Unilever as the chief procurement officer, had worked with Manwani before and was recruited by him to advise as a supply chain specialist.

Dhaval Buch “advises private equity companies across Asia on procurement and supply chain-related topics, which is his area of expertise. He is not involved in any investment-related activities,” the person cited above added. 

"He was appointed after several interviews and has never been involved in real estate REIT, capital markets or interfaced with any regulator on any topic while at Blackstone," the person added.