Breaking News: Congress Accuses SEBI Chief Madhabi Puri Buch of Conflict of Interest
 "Congress Claims Sebi Chief's Rental Income is Shady")
Securities and Exchange Board of India (SEBI) chairperson Madhabi Puri Buch (File Photo: PTI)
The Congress party has raised serious allegations against Madhabi Puri Buch, the chairperson of the Securities and Exchange Board of India (SEBI). They are pointing fingers at her rental income, saying it puts her in a conflict of interest situation.
Congress Claims Conflict of Interest
According to the opposition, Buch earned rental income from an entity linked to Wockhardt, a pharmaceutical company under SEBI’s investigation for insider trading and other issues. Congress highlighted that Buch earned Rs 2.16 crore as rental income from Carol Info Services over the past six years, from FY19 to FY24. She served as a full-time member of SEBI from April 2017 to October 2021 and became the chief in March 2022.
Allegations Raised
Congress spokespersons have been vocal about the matter. They noted, “Previous SEBI chairpersons have avoided any appearance of conflict of interest. Ms. Buch, however, transferred her investments to her spouse, raising questions about her credibility.”
Following these allegations, shares of Wockhardt experienced a 5% drop, closing at Rs 1,035 apiece on Friday.
Orders Cited by Congress
Congress listed four specific orders involving Wockhardt:
- Two of these were settlement orders dated between March 2023 and July 2023.
- One settlement order, decided before Buch took over as SEBI chair, resulted in Wockhardt paying Rs 27 lakh in February 2023.
- The second settlement in May 2023 saw Wockhardt disburse Rs 36.7 lakh.
However, a closer look reveals some discrepancies. Two orders related to the same matter were issued a month apart by an adjudicating officer and yet failed to include Wockhardt as a noticee.
SEBI had ordered the disgorgement of Rs 14.23 lakh, along with 4% interest over 10 years, from a former Wockhardt executive for insider trading violations. Additionally, this executive was banned from the securities market as per a July 31, 2023, order.
Further Questions from Congress
Congress didn’t stop there. They took aim at the approval process for Buch’s appointment, questioning, “Was her appointment contingent on maintaining her past financial ties, provided she aligned with the interests of the Prime Minister and his close aides?”
More Allegations Fly
This isn’t Congress’s first offensive against Buch. Earlier this week, they scrutinized alleged payments and ESOPs Buch received from ICICI Bank, both in terms of amount and payout frequency. ICICI Bank quickly countered these claims, stating Buch received no salary or ESOPs post-retirement in October 2013, and that employees could exercise their ESOPs any time within 10 years of vesting.
Wide-Ranging Impact
The allegations against Buch have come from various quarters this week. Aside from the Congress accusations, she has faced corruption allegations from Zee Entertainment promoter Subhash Chandra, who is under investigation for fund diversion. Additionally, unrest has been reported among SEBI employees.
Wrapping It Up
Congress’s recent allegations have put the SEBI chairperson in the spotlight, questioning her integrity and raising broader concerns about transparency and conflict of interest within India’s top market regulator. It remains to be seen how these accusations will be addressed and what impact they will have on SEBI and the broader financial environment in India.
Stay tuned with India Press Live for more updates on this developing story.
