Congress Accuses SEBI Chairperson of Conflict of Interest, Targets PM Modi
New Delhi, August 28, 2024: The Congress has launched a scathing attack on SEBI Chairperson Madhabi Puri Buch, accusing her of a conflict of interest. The party claims that Buch has been receiving substantial payments from ICICI Bank even after joining SEBI, raising serious ethical concerns. The opposition party has also called on Prime Minister Narendra Modi to clarify the circumstances surrounding her appointment.
Congress Alleges SEBI Chief Earned Millions from ICICI Bank
In a press conference held in New Delhi, Congress leaders alleged that since Madhabi Puri Buch joined SEBI in 2017, she has been drawing a significant income from ICICI Bank. According to the Congress, Buch received Rs 16.8 crore from ICICI during her tenure at SEBI, which is more than five times the income she earned from SEBI, amounting to Rs 3.3 crore over the same period.
Congress spokesperson Pawan Khera stated, “When someone holds a high-ranking position in a regulatory body like SEBI, it is expected that they would be free from any external financial interests. However, the current SEBI Chairperson has allegedly continued to receive payments from ICICI Bank and its holdings while serving at SEBI. This is a clear violation of Section 54 of SEBI regulations.”
Buch, who has a long history with ICICI Bank, including serving as the CEO of ICICI Securities from 2009 to 2011, was a whole-time member of SEBI from April 5, 2017, to October 4, 2021. She was then appointed as the SEBI Chairperson in March 2022.
Congress Raises Questions About SEBI’s Independence
The Congress party has expressed concerns about the independence of SEBI under Buch’s leadership, especially in light of the ongoing Supreme Court-mandated investigations into alleged securities law violations by the Adani Group. Congress general secretary in-charge of communications, Jairam Ramesh, highlighted the potential conflict of interest, saying, “Serious questions have been raised about the SEBI chairperson’s role in these investigations. The Government of India seems to have brushed these concerns aside. Now, this new revelation of financial irregularities adds another layer of doubt.”
Ramesh further demanded that Prime Minister Modi address these concerns publicly. “The Prime Minister, who has remained silent on this matter, must come clean and answer key questions about the criteria for appointing heads of regulatory bodies. This situation raises doubts about the integrity of SEBI’s operations under Buch’s leadership.”
ICICI Bank Issues Clarification
In response to the allegations, ICICI Bank issued a statement denying any wrongdoing. The bank clarified that Madhabi Puri Buch has not been paid any salary or granted any employee stock options (ESOPs) by ICICI Bank or its group companies after her retirement. The statement emphasized that the only payments made to Buch after her retirement were related to her retiral benefits.
“It may be noted that she opted for superannuation with effect from October 31, 2013. During her employment with the ICICI Group, she received compensation in the form of salary, retiral benefits, bonus, and ESOPs, in line with applicable policies,” the ICICI Bank statement read.
Hindenburg Research Allegations
The Congress’s accusations come on the heels of a report by US-based short-seller firm Hindenburg Research. The report alleged that Buch and her husband, Dhaval Buch, had stakes in offshore entities linked to the alleged Adani money siphoning scandal. The Buchs have denied these allegations, stating that their investment in the fund in question was made two years before Madhabi joined SEBI.
On Monday, Madhabi Puri Buch attended a Confederation of Indian Industry event. During her speech, Buch briefly addressed the ongoing controversy. “I could talk about investing in real estate investment trusts (REITs), but I would be accused of a conflict of interest. So, it would be better for me to abstain,” she said, hinting at the Hindenburg Research allegations.
The controversy surrounding Buch’s financial ties to ICICI Bank and her husband’s role at Blackstone has added to the growing scrutiny of SEBI’s operations under her leadership. As the Congress continues to press for answers, the issue is likely to remain a focal point in the coming weeks.
