Didn't pay salary to Sebi chief Buch after retirement: ICICI Bank clarifies

The clarification came after the country's opposition party alleged that Buch continued to draw a salary from the bank

ICICI Bank said on Monday it did not pay any salary or granted employee stock options to the Securities and Exchange Board of India (Sebi) chief Madhabi Puri Buch after her retirement from the bank.

The clarification came after the country's opposition party Congress, on Monday, alleged that Buch continued to draw a salary from the bank despite being named as full-time member of the markets regulator, in a potential violation of rules.

 

Congress asked Prime Minister Narendra Modi to come clean as the head of the appointments committee of the cabinet on her appointment. "Narendra Modi ji, for 10 years, you have tried your best to crush the autonomy and independence of India's long-standing institutions to help your crony friends! We saw this in the case of appointments in CBI, ED, RBI, CEC; now we are facing the same in SEBI," Congress president Mallikarjun Kharge said in a post on X. "You have appointed the first lateral entry chairperson of Sebi without any due diligence, this has put a black stain on its reputation and belittled the integrity of the market regulator. After all, Sebi protects the hard-earned money of small and middle-income investors," he said.

The opposition party said the Supreme Court should take cognisance of these fresh revelations and demanded that the Sebi chairperson should be dismissed immediately.

 

 

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 Sebibut has also been holding an office of profit at the ICICI Bank, continuing to receive income from them to this very day.
Here is the clarification from ICICI:

It has come to our attention that there are certain reports in media alleging payment of salary by ICICI Group to Madhabi Puri Buch, Chairperson, Sebi. In this connection, we would like to clarify as follows: 

Gautam Adani (Credit: Wikimedia Commons)

“ICICI Bank or its group companies have not paid any salary or granted any ESOPs to Ms. Madhabi Puri Buch after her retirement, other than her retiral benefits. It may be noted that she had opted for superannuation with effect from October 31, 2013. During her employment with the ICICI Group, she received compensation in the form of salary, retiral benefits, bonus and ESOPs, in line with applicable policies. 

 

Under the Bank’s ESOP rules, the ESOPs vest over the next few years from the date of allotment. As per rules existing at the time of her ESOP grant, employees including retired employees had the choice to exercise their ESOPs anytime up to a period of 10 years from the date of vesting.

 

As per Income Tax rules, the difference between the price of the stock on the day of exercise and the allotment price is treated as perquisite income and is reflected in Part B of the Form-16 of employees, including retired employees. The Bank is required to deduct the perquisite tax on this income. In addition, Form -16 covers the payment made towards the retiral benefits of

 

former employees. All the payments made to Ms. Buch post her retirement had accrued to her during her

employment phase with the ICICI Group. These payments comprise ESOPs and retiral benefits.”