Buch continued to draw salary from ICICI while at Sebi, alleges Congress

The Congress on Monday alleged that Securities and Exchange Board of India (Sebi) chairperson Madhabi Puri Buch continued to “draw salary” from her previous employer, a prominent private bank, despite being appointed a full-time member of the market regulator.

Congress leader Pawan Khera alleged that Buch earned close to Rs 16 crore from the ICICI group while being an official at the market regulator.

Speaking at a session by CII in Mumbai on Monday, Buch did not respond to questions on the fresh allegations. However, in her address she said, “Even if I utter the word REITs, I am alleged to have a conflict of interest.”

Khera, who made the allegations during a press conference, has sought an explanation from Buch and Prime Minister Narendra Modi, who is involved in selecting the Sebi chief.

Buch took charge as Sebi chairperson in March 2022. Before that she was a whole-time member with the regulator between April 2017 and October 2021. Prior to joining Sebi, she was associated with ICICI Bank and its group firms for over two and a half decades.

The Opposition party has alleged that Buch was “drawing a salary” from her erstwhile employer while holding the Sebi position, which it said was in contravention of rules.

Citing a news article, Khera alleged Buch “changed regulations” to favour the ICICI group.

He alleged that the easier delisting rules for ICICI Securities was one such “favours”.

The Congress also alleged that Sebi chair continued to pass judgments and was involved in matters concerning the ICICI group while “earning income from the group”. He asked whether this income was declared and taken into account before her appointment as the head of the capital market regulator.

Additionally, Khera questioned whether ICICI Bank made any disclosure under the Listing Obligations and Disclosure Requirements (LODR) Regulations mandated for listed companies on the ESOPs granted to Buch.

Last month, the New-York based short-seller Hindenburg Research had questioned Buch’s objectivity in probing the Adani Group, alleging that she held stake in offshore entities used to siphon off funds and manipulate stock prices.

The short-seller also alleged that Sebi’s regulatory changes favoured REITs because Buch’s husband Dhaval Buch was an advisor with Blackstone.

Buch and her husband Dhaval Buch had issued statements refuting all the allegations. She added that they had made disclosures and had included connected firms in her recusal list.

In a statement issued post the Hindenburg allegations, the duo had said that during their long corporate careers they “have accrued their savings through their salaries, bonuses and stock options. Insinuations about net worth and investments referencing Madhabi’s current government salary are malicious and motivated.”