The Securities and Exchange Board of India (SEBI) has stated that information regarding instances when its chairperson, Madhabi Puri Buch, recused herself due to potential conflicts of interest is not “readily” available and gathering such data would “disproportionately divert” its resources. This response was provided in an RTI inquiry by transparency activist Commodore Lokesh Batra (retd), reports PTI.
SEBI also declined to release copies of Buch’s financial declarations to the government and SEBI Board, citing “personal information” and potential threats to personal safety. The regulator refused to disclose the dates of these disclosures as well.
The SEBI Central Public Information Officer (CPIO) stated, “Since the information sought do not pertain to you and the same relates to personal information, the disclosure of which has no relationship to any public activity or interest and may cause unwarranted invasion into the privacy of the individual and may also endanger the life or physical safety of the person(s). The same is, therefore exempt in terms of Section 8(1)(g) and 8(1)(j) of the RTI Act, 2005.”
“Further the information on cases where Madhabi Puri Buch recused herself due to potential conflicts of interest during her tenure is not readily available and collating the same will lead to disproportionately diverting the resources of the public authority in terms of Section 7(9) of the RTI Act,” it said.
Section 8(1)(g) allows public authorities to withhold information that could endanger someone’s life, while Section 8(1)(j) permits withholding personal information unrelated to public interest. A CPIO may still disclose information if the public interest in disclosure outweighs the protected interests.
In an August 11 press release, SEBI had claimed that Buch recused herself in matters involving potential conflicts of interest. It noted that she had made relevant disclosures regarding her securities holdings over time.
The US-based short seller Hindenburg Research has alleged that SEBI’s reluctance to act against the Adani group may be linked to Buch’s stakes in offshore funds connected to the conglomerate. The firm alleged that Buch and her husband, Dhaval, invested in a fund allegedly used by Vinod Adani, and it flagged Dhaval’s ties to private equity firm Blackstone.
SEBI stated that the allegations against the Adani group have been duly investigated, noting that the Supreme Court indicated in January that 24 out of 26 investigations against Adani had been completed, with additional investigations nearing conclusion.
Congress says “mockery of transparency”
The Congress has slammed SEBI’s refusal to disclose instances when its chairperson Madhabi Buch recused herself due to conflict of interest and said that this makes a “mockery” of public accountability and transparency.
Reacting to the development, Congress general secretary in-charge communications Jairam Ramesh called it “pathetic”.
In another post on X, he said, “The multiple conflicts of interest of the SEBI Chairperson that have been revealed so far are shocking in themselves. Now in a move that adds more fuel to the raging fire, SEBI has simply refused to divulge information to a RTI activist on instances of the SEBI Chairperson recusing herself on issues where there have been potential conflicts of interest.”
“This makes a mockery of public accountability and transparency as far as SEBI is concerned,” he added.