Allegations Against SEBI Chairperson Madhabi Puri Buch by Congress Spokesperson

The political landscape in India is once again stirred up as Congress spokesperson Pawan Khera has launched a sharp attack on SEBI (Securities and Exchange Board of India) Chairperson Madhabi Puri Buch. Khera raised significant questions regarding Buch’s alleged receipt of a salary from ICICI Bank while serving as a SEBI member from 2017 to 2024, amounting to a staggering ₹16.80 crores.

Background of the Allegations

Pawan Khera pointed out that while serving as a full-time member of SEBI, Buch concurrently held a position at ICICI Bank. He emphasized that the appointment of the SEBI chairperson is made by the Prime Minister and the Union Home Minister, suggesting that such dual roles raise ethical questions.

Khera has previously called for discussions surrounding the Hindenburg report and the role of SEBI in regulating entities like the Adani Group. He stressed that these issues have been prominent and need transparent answers.

Questions Regarding Salary and Conduct

During his statement, Khera raised several pertinent questions about Buch’s financial dealings:

• Madhabi Puri Buch reportedly received ₹16.80 lakhs in salary from ICICI Bank from 2017 to 2019 while being a member of SEBI, which he claims is a violation of SEBI’s Section 54 regarding “Office of Profit.”
• Khera highlighted that while Buch received a salary from SEBI as well, her compensation from ICICI Bank saw a staggering 422% increase, indicating multiple salary sources.
• He argued that this situation represents a clear conflict of interest, especially as SEBI was investigating various cases involving ICICI Bank during that period.

Challenges to Prime Minister Modi’s Government

Khera did not shy away from directing questions toward Prime Minister Narendra Modi and Union Home Minister Amit Shah regarding the integrity of the appointment process for regulatory body heads like Buch.

1. Did the Prime Minister know that Madhabi Puri Buch was receiving a salary from ICICI Bank while serving as a SEBI member?
2. Was the Prime Minister aware that decisions on ICICI Bank cases were being adjudicated by a member who was on their payroll?
3. Why did Buch continue to receive benefits from ICICI Bank even after her appointment at SEBI?
4. What measures is the government taking to address potential protections for Buch following the revelations in the Hindenburg report?

ICICI Bank’s Role and Responsibilities

Khera also directed inquiries towards ICICI Bank, questioning its ethical responsibilities:

1. Has ICICI Bank ever disclosed to the Government that it was paying a salary to a member of SEBI?
2. What services or benefits does ICICI Bank expect in return for compensating a regulatory authority?
3. What justified the provision of these unforeseen benefits?

Call for Transparency from Madhabi Puri Buch

In conclusion, Khera urged Madhabi Puri Buch to clarify whether there are other companies from which she or her family members have benefited similarly. He called for transparency regarding any additional companies before which she acts as a decision-maker and to ensure public knowledge of these relationships.

Conclusion

This unfolding situation raises crucial questions about the intersection of regulation, corporate governance, and political oversight in India. With such significant allegations now in the public domain, it remains to be seen how SEBI, the government, and Madhabi Puri Buch will address these matters.