Conflict of interest: Buch drew salary from ICICI while at Sebi, says Congress

Congress leader Pawan Khera accuses Buch of receiving remuneration not only from the government but also from ICICI Bank and ICICI Prudential.

Congress leader Pawan Khera on Monday raised serious concerns about Securities and Exchange Board of India (Sebi)

Chairperson Madhabi Puri Buch. In a press conference, Khera accused Buch of receiving remuneration not only from the government but also from private entities, including ICICI Bank and ICICI Prudential, while serving in her official capacity, marking this as a serious conflict of interest.

Khera had earlier teased on social media that a "big expose" would be announced in today's press conference.

Khera claimed that multiple investigations involving ICICI Bank had been concluded while Buch was allegedly drawing income from these private institutions. He called on the Sebi chairperson to issue a public clarification regarding these accusations.

 

A press note released by Congress leader Jairam Ramesh further added that Sebi Chair Buch received Rs 16.8 crore from ICICI since joining Sebi in 2017. Ramesh added that this was 5.09 times more than her salary from Sebi during the same period, which was reportedly Rs 3.3 crore.

ICICI Bank, ICICI Securities merger

Sebi's current critiism stems from some shareholders regarding its involvement in the merger between ICICI Bank Ltd and its subsidiary, ICICI Securities.

The merger, announced in June last year, involved ICICI Bank offering 67 of its shares for every 100 shares of ICICI Securities, a company in which the bank already holds nearly 75 per cent. The merger has raised concerns among shareholders who feel aggrieved by the terms of the deal and Sebi's role in overseeing it.

Buch and Hindenburg Research

Khera's comments follow a series of allegations by the US-based short seller Hindenburg Research. On August 10, Hindenburg accused Buch and her husband of making investments in obscure offshore funds, which it claimed were used in the “Adani money siphoning scandal.” This allegation builds on Hindenburg’s earlier report from January 2023, which accused the Adani Group of financial misconduct and stock manipulation.