M&M, DRL, Pidilite, ICICI Bank: Stocks unfazed amid allegations of links with Sebi Chief’s advisory firm

Shares of listed firms such as Mahindra & Mahindra Ltd (M&M), ICICI Bank Ltd, Dr Reddy’s Laboratories Ltd (DRL) and Pidilite Industries Ltd, which found mention in the Congress’ list of companies as clients with Agora Advisory Private Limited, were unfazed amid a positive momentum in the stock market. It is alleged that in 2016-17, 2019-2020, to as late as 2023-24, as a Whole Time Member of SEBI and later as its Chairperson, Madhabi P Buch received a total of Rs 2.95 crore through Agora Advisory Private, hinting at a conflict of interest. 

Agora Advisory is owned by Madhabi Puri Buch and her husband Dhaval Buch. Following the Hindenburg report, Madhabi Puri Buch denied this association, claiming the company became dormant after she joined SEBI. Congress claims she still owns a 99 per cent stake in the company.

M&M shares, which fell 1.23 per cent to hit a low of Rs 2,677 earlier today, recovered and were trading flat at Rs 2,708.75 on BSE. Congress alleged that out of a total Rs 2.95 crore received by Agora Advisory, Rs 2.59 crore came from the Mahindra & Mahindra Group alone, accounting for 88 per cent of the total money the advisory firm received.

“If this was not shocking enough, the SEBI Chairperson’s husband - Mr. Dhaval Buch received 4.78 Crores as income in a personal capacity from the Mahindra & Mahindra Group,” Congress alleged. 

ICICI Bank shares were trading 0.13 per cent lower at Rs 1,236.30. Dr Reddy’s Labs was up 0.49 per cent at Rs 6,685. Pidilite Industries shares were down 0.4 per cent at Rs 3,257.95. As far as the stock market is concerned, the BSE Sensex was trading at 82,177.60, up 618.06 points or 0.76 per cent. The NSE Nifty was up 182.95 points or 0.73 per cent at Rs 25,119.35.

Sembcorp and Visu Leasing & Finance were two other clients of Agora Advisory Private Limited, as suggested by Congress. 

While the Sebi Chief Madhabi Buch claimed that the two consulting firms set up by her in Singapore & India - one of which is Agora Advisory Private Limited in India - became immediately dormant on her appointment with SEBI, Congress claimed that as of March 31, 2024, she still owned stake in the Indian entity that has been actively providing advisory/consultancy services till date.