Congress levels fresh conflict of interest allegations against SEBI chief, asks PM to come clean on her appointment

At a press conference, 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 the ICICI Bank, continuing to receive income from them to this very day.

New Delhi: Congress on Monday levelled fresh allegations around the conflict of interest, targetting SEBI Chairperson Madhabi Buch. The party claimed that she continued to hold an office of profit at the ICICI Bank even after taking over as a member of the regulatory body seven years ago.

The party also asked Prime Minister Narendra Modi to come clean as the head of the appointments committee of the cabinet on her appointment. Buch was a whole time member of SEBI from 5 April, 2017 to 4 October, 2021 and the chairperson from 2 March, 2022 onwards.

The fresh allegations come days after Hindenburg Research claimed that Buch and her husband had stakes in obscure offshore funds used in the Adani money siphoning scandal. Buch and her husband had denied the allegations.

In a statement, Congress claimed Buch received Rs 16.80 crore from ICICI as salary and income since 2017 after she became SEBI member and later chairperson, which is "shockingly 5.09 times the income she received from SEBI" during the same period, which amounts to Rs 3.30 crore.

"As a whole time member and chairperson of SEBI, the current SEBI Chairperson was not only drawing income from ICICI but also adjudicating complaints against ICICI and its affiliates. This is a blatant violation of Code of Conduct on Conflict of Interests for Members of Board (2008)," it said.

Addressing a press conference here, Congress Media Department chairperson Pawan Khera said the SEBI is entrusted with safeguarding the hard-earned money of the Indian middle class, which painstakingly saves every penny that it can, to invest in the hope of a secure future.

"Yet, while the people place their hopes in SEBI, whose chairperson is appointed directly by the Prime Minister of India, they appear to have been conning us all along," he claimed.

Congress General Secretary (Communications) Jairam Ramesh said serious questions have been raised over the conflict of interest of the SEBI chairperson and these questions seem to have been simply brushed aside by the government.

He said the Prime Minister, who has been "complicit in providing cover to the SEBI chairperson through his silence", must "come clean and answer" questions as he headed the Appointments Committee of the Cabinet, which appointed SEBI members.

"Has the Appointments Committee of the Cabinet (ACC), headed by the PM, gone through these shocking facts about the SEBI Chairperson or is the ACC completely outsourced to the PMO?" he asked.

"Was the Prime Minister aware that the current SEBI Chairperson as a whole-time member of SEBI was adjudicating complaints against ICICI and its affiliates while also receiving income from ICICI? Why did the current SEBI Chairperson continue to receive ESOP benefits from ICICI even though they had lapsed long ago?" he said.

Khera claimed between 2017-2021, Buch as a whole time member of SEBI received a salary from ICICI Bank amounting to Rs 12.63 crore and between 2017-2024, he alleged as a whole time member and later as the SEBI chairperson, she also received income from ICICI prudential amounting to Rs 22.41 lakh. Both were in violation of the SEBI (Employees' Service) Regulations, 2001, he said.

Separately between 2021-2023, he claimed, she was also in receipt of ESOP from ICICI Bank amounting to Rs 2.84 crore and during the same period she was also in receipt of TDS on the ESOP that was paid by ICICI Bank amounting to Rs 1.10 crores. These were violations of ICICI Employees Stock Option Scheme 2000 and SEBI Code of Conduct, Khera said.