In a fresh salvo of alleged conflict of interest agaist the SEBI Chief, Madhabi Puri Buch, the Congress party has expressed concerns at a press conference on Monday. INC Party spokesperson Pawan Khera claimed that Buch continued to receive a salary from ICICI Bank while serving as a SEBI member. According to Khera, this situation represents a significant breach of ethics and accountability in public service.
Underlining that the market regulator should maintain impartiality and independence, Khera questioned the integrity of SEBI. “How can one ensure fair regulation when the head of SEBI has been receiving a salary from a private entity like ICICI Bank?” Khera asked. He emphasised the need for transparency in the regulatory body.
He alleged during a press briefing that Buch received a total of Rs 16.80 crore between 2017-18 and 2023-24 from ICICI Bank, ICICI Prudential, employee stock ownership plans (ESOPs), and tax deducted at source (TDS) on ESOPs.
According to the Congress’ allegations, Buch received Rs 2.06 crore from ICICI Bank and ₹7 lakh from ICICI Prudential as a salary in 2017-18. In 2018-19, she allegedly received Rs 4.71 crore from ICICI Bank and Rs 2.17 lakh from ICICI Prudential. The following year, in 2019-20, it was claimed that she received Rs 1.21 crore from ICICI Bank and Rs 2.17 lakh from ICICI Prudential. In 2020-21, Buch was allegedly paid Rs 4.64 crore from ICICI Bank and Rs 2.17 lakh from ICICI Prudential. The Congress further asserts that in 2021-22, while her salary from ICICI Bank reportedly stopped, she continued to receive Rs 2.17 lakh from ICICI Prudential, along with ESOPs and TDS on ESOPs from ICICI Bank. In 2022-23, she allegedly received Rs 4.44 lakh from ICICI Prudential, in addition to ESOPs and TDS on ESOPs, and in 2023-24, Rs 2.17 lakh from ICICI Prudential.
The Congress further alleged that during this period, Buch also drew a salary from SEBI while several investigations concerning ICICI Bank were being adjudicated. Khera suggested that this posed a significant conflict of interest and questioned why Buch continued to receive payments from ICICI Bank despite being a full-time member of SEBI. He claimed this situation constituted a direct violation of Section 54 of SEBI and called for Buch’s resignation.
Khera also referenced unnamed reports that claimed Buch had relaxed regulations for ICICI Bank during her tenure. He characterized the situation as a clear “office for profit” case and demanded an explanation for her dual income sources while serving in a regulatory role.
As of now, Madhabi Puri Buch has not responded to these allegations. It is worth noting that Buch served as a full-time member of SEBI from April 5, 2017, to October 4, 2021, and became the Chairperson of SEBI on March 2, 2022.
In a separate but related development, US-based short seller Hindenburg Research recently accused Buch of a conflict of interest, claiming she and her husband, Dhaval Buch, had stakes in entities allegedly involved in the Adani money siphoning scandal. Buch and her husband have since issued a statement strongly denying these allegations, stating that their finances are transparent and all required disclosures have been made to SEBI. They characterized the accusations as a baseless attempt at character assassination.