SEBI chairperson Madhabi Puri Buch's connection with the asset management giant Blackstone has come under scrutiny amid Hindenburg Research report's allegations linking her to Adani group. Madhabi, in her capacity as the chairperson of SEBI, promoted Real  Estate Investment Trusts as a promising asset class. 

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Now, it has emerged that Buch's husband Dhaval Buch is currently an adviser to Blackstone Inc., the world's largest alternative asset manager with over $1 trillion assets under management. Blackstone has sponsored two of the four listed Real Estate Investment Trusts. 

Madhabi has refuted the conflict of interest accusations made by the US-based short-seller Hindenburg Research about her ownership of "stakes in obscure offshore funds used in the Adani money siphoning scandal."

She also stated that she had withdrawn from all Blackstone-related matters as SEBI chairperson. 

Even though Madhabi has recused herself from all Blackstone-related affairs, the New York-headquartered asset management giant either owns or has a significant stake in major companies including the hospital chain Care Hospitals, the IT services provider Mphasis, Aadhar Housing Finance, Indiabulls Housing Finance (now Sammaan Capital), and ASK Investment Managers, among others, The Morning Context has reported.

Madhabi Puri Buch and SEBI have not yet revealed whether she had recused herself from all the cases involving Blackstone-linked companies. 

Earlier in February, under Buch's supervision, SEBI had approved the initial public offering (IPO) of Aadhar Housing Finance, a business that Blackstone controlled. 

The Morning Context report added that in August 2021, as a full-time SEBI member, Madhabi Puri Buch resolved an insider trading case against one Atul Goel and his business, E-city Hi-Tech Projects. This is significant because in April 2019, Ashok Goel Trust, in which Atul Goel is an advisory board member, was the 51 per cent stake buyer of Blackstone interest.

(With inputs from agencies)