The Congress on Monday accused SEBI Chairperson Madhabi Buch of drawing a salary from SEBI while also holding a position of profit at ICICI Bank and receiving income from the bank since 2017.
The party has called on Prime Minister Narendra Modi, as head of the appointments committee, to clarify her appointment and transparency over Buch’s dual roles and potential conflicts of interest.
In response to the claims, ICICI Bank on Monday said that it has not paid any salary or granted ESOPs to Sebi chairperson after her retirement on October 31, 2013.
Congress general secretary Jairam Ramesh highlighted concerns about a potential conflict of interest involving the SEBI chairperson as SEBI is undertaking Supreme Court-ordered investigations into alleged securities law violations by the Adani Group.
He added that the chairperson’s connections could impact the integrity of the investigation.
"These questions seem to have been simply brushed aside by the Government of India. Now comes this fresh revelation of shocking illegality," Ramesh said in a post on X.
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"The non-biological PM, who has been complicit in providing cover to the SEBI chairperson through his silence, must come clean and answer the following questions What is the fit and proper criteria for appointment of heads of regulatory bodies?" he added.
Further, Ramesh asked if the Appointments Committee of the Cabinet (ACC), headed by the PM, gone through these shocking facts about the SEBI Chairperson or is the ACC completely outsourced to the PMO.
Ramesh also questioned whether the prime minister was aware that the SEBI chairperson was holding an office of profit and receiving salary/income from ICICI during her time at SEBI.
"Was the Prime Minister aware that the current SEBI Chairperson as a whole-time member of SEBI was adjudicating complaints against ICICI and its affiliates while also receiving income from ICICI? Why did the current SEBI Chairperson continue to receive ESOP benefits from ICICI even though they had lapsed long ago?" he said.
Who is protecting the SEBI chairperson and why, Ramesh further asked.
"The non-biological PM cannot continue this indefinite stonewalling. Capital markets, in which crores of Indians make their investment, demand full transparency and integrity on the part of their regulator," the senior Congress leader said.
Addressing a press conference at the AICC headquarters here, Congress' media and publicity department head Pawan Khera said that Buch was a whole time member of SEBI from April 5, 2017 to October 4, 2021 and the chairperson from March 2, 2022 onwards.
"The Securities and Exchange Board of India (SEBI) is entrusted with safeguarding the hard-earned money of the Indian middle class, which painstakingly saves every penny that it can, to invest in the hope of a secure future. Yet, while the people place their hopes in SEBI, whose chairperson is appointed directly by the Prime Minister of India, they appear to have been conning us all along," he alleged.
There have been multiple conflicts of interest involving the SEBI chairperson, he said.
"Between 2017-2021, as a whole time member of SEBI, the current SEBI chairperson received a salary from ICICI Bank amounting to Rs 12.63 crore, he claimed.
This is in violation of Section 54 of the SEBI (Employees' Service) Regulations, 2001, he said.
Between 2017-2024, as a whole time member and later as the SEBI chairperson, she also received income from ICICI prudential amounting to Rs 22.41 lakh, Khera alleged.
This is again in violation of Section 54 of the SEBI (Employees' Service) Regulations, 2001, he added.
Between 2021-2023, the current SEBI chairperson was also in receipt of ESOP from ICICI Bank amounting to Rs 2.84 crore, Khera alleged and said this is in violation of Section X of the ICICI Employees Stock Option Scheme 2000.
Between 2021-2023, the current SEBI chairperson was also in receipt of TDS on the ESOP that was paid by ICICI Bank amounting to Rs 1.10 crores, he said.
The said TDS amount is chargeable under salary and is again in violation of the SEBI Code of Conduct, Khera said.
"This is a case of escapement of income tax as the benefit of TDS on ESOP paid by ICICI Bank is a prerequisite and again is liable for tax. This tax escape is Rs 50 lakh," he alleged.
The Congress has alleged that SEBI Chairperson Madhabi Buch received a total of Rs 16,80,22,143 from ICICI Bank since joining SEBI in 2017, which is 5.09 times the Rs 3,30,28,246 she earned from SEBI in the same period.
How Did ICICI Bank Respond?
ICICI Bank on Monday said it has not paid any salary or granted ESOPs to Sebi chairperson Madhabi Puri Buch after her retirement on October 31, 2013, as alleged by the Congress.
"ICICI Bank or its group companies have not paid any salary or granted any ESOPs to 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," the bank said in a statement.
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, it added.
"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," it said.
These new allegations follow recent claims by Hindenburg Research, which accused Buch and her husband of holding stakes in obscure offshore funds linked to the Adani money siphoning scandal.
SEBI Chairman Buch and her husband have denied the allegations levelled against them as baseless and asserted that their finances are an open book.
Adani Group had also termed Hindenburg Research's allegations as malicious and manipulative of select public information, saying it has no commercial relationship with the SEBI chairperson or her husband.
(With PTI inputs)
