Sebi Chief Was Drawing Salary from ICICI, Congress Alleges; Bank Denies Claim
The Congress has alleged that Madhabi Puri Buch received an income of Rs 16.8 crore from ICICI since joining Sebi in 2017, which is 5.09 times her Sebi income of Rs 3.3 crore during the same period.
Key News Highlights:
- Congress accuses Sebi Chairperson of conflict of interest.
- Buch allegedly received Rs 16.8 crore from ICICI Bank.
- Congress asks PM Modi to clarify her appointment.
On Monday, the Congress accused Sebi Chairperson Madhabi Puri Buch of a conflict of interest, alleging that she was receiving regular income from a private bank while being a full-time member of the market regulatory body. The bank refuted the allegation, stating that Buch was not paid any salary after her retirement, apart from her retirement benefits.
At a press conference in Delhi, the Congress alleged that since the current Sebi chairperson took office in 2017, she has not only been drawing a salary from Sebi but has also been holding an office of profit at ICICI Bank and its holdings, continuing to receive income from them to this very day.
"When you work at one company, you take a salary from there only. However, when the Sebi Chairperson was a whole-time member of Sebi, she was receiving regular income from ICICI Bank, Prudential, and ESOP from 2017-2024. Someone sitting in such a high position in a regulatory body was receiving a payment from somewhere else. This is a complete violation of Section 54 of Sebi," said Congress leader Pawan Khera during the press conference.
Madhabi Buch was a whole-time member of Sebi from April 5, 2017, to October 4, 2021, before she assumed the role of Sebi Chairperson in March 2022. Buch, who started her career in 1989 with ICICI Bank, served as the CEO of ICICI Securities from February 2009 to May 2011.
In its press release, the Congress alleged that the total amount received by Buch from ICICI since she joined Sebi in 2017 totals Rs 16.8 crore, which is "shockingly 5.09 times the income she received from Sebi during the same period, amounting to Rs 3.3 crore."
Congress general secretary in-charge of communications Jairam Ramesh said serious questions have been raised over the conflict of interest of the Sebi chairperson in the regulatory body's Supreme Court-mandated investigations into violations of securities laws by the Adani Group.
"These questions seem to have been simply brushed aside by the Government of India. Now comes this fresh revelation of shocking illegality," Ramesh said in a post on X (formerly Twitter).
"The non-biological PM, who has been complicit in providing cover to the SEBI chairperson through his silence, must come clean and answer the following questions: What is the fit and proper criteria for the appointment of heads of regulatory bodies?" he asked.
In a statement, ICICI Bank clarified that Buch has not been paid any salary or granted any ESOPs by the bank or its group companies after her retirement, other than her retirement 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, retirement benefits, bonus, and ESOPs, in line with applicable policies," the statement read.
The Congress's allegations come days after US-based short-seller firm Hindenburg Research claimed that Madhabi Puri Buch and her husband Dhaval Buch had a stake in some obscure offshore entities used in the alleged Adani money siphoning scandal.
The Buchs denied the allegations, saying that their investment in the fund, which Hindenburg claimed is linked to the alleged Adani stock manipulation, was made two years before Madhabi joined Sebi.
On Monday, Madhabi Puri Buch attended a Confederation of Indian Industry event. At the event, Buch said she could talk about investing in real estate investment trusts (REITs), but she would get accused of conflict of interest.
"So, it would be better for me to abstain," she said.
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Buch was hinting at the allegation by Hindenburg Research that she had promoted REITs to investors as her favorite asset class at industry conferences after her husband, Dhaval Buch, was appointed in 2019 as a senior advisor at global investment firm Blackstone.