Wockhardt stocks hit after Congress alleges SEBI chief of link

Shares of Wockhardt Pharma Ltd dropped by more than 5 percent on Friday, following allegations by the Congress party that Securities and Exchange Board of India (SEBI) chair Madhabi Puri Buch had a conflict of interest with the pharmaceutical company.

At a press conference, Mr Khera had accused Ms Buch of corruption and insider trading. He claimed that Ms Buch and her husband owned a piece of property in Mumbai, which had been rented to Carol Info Services Ltd, a company affiliated with Wockhardt Ltd. Mr Khera further noted that SEBI was involved in multiple cases with the firm.

Mr Khera said this constituted a conflict of interest and can be considered an act of corruption.

"The company is called Carol Info Services Ltd. This is a part of a company called Wockhardt Ltd, they have the same promoters. Wockhardt is a company on which SEBI is continuously giving orders and dealing with its cases," said Khera at the press conference.

Congress for independent probe

The Congress has called for an independent investigation into the allegations, stressing the importance of protecting the integrity of India's stock markets in the national interest. The party expressed concerns that the situation could erode foreign investors' confidence in the country's financial system. The Congress emphasised that SEBI, as the regulatory body, must remain beyond any suspicion of misconduct to uphold the trust of millions of investors.

"Madhabi Puri Buch is the chairperson of the same organisation (SEBI) which has grievances against Wockhardt. There was a case of insider trading too, her organisation (SEBI) dealt with the insider trading case of Wockhardt too. This is a conflict of interest, I would call it corruption. This is not just conflict of interest, this is out-and-out corruption," Mr Khera added.

`Any deal with Madhabi, Mr Modi?' 

The Congress criticised Prime Minister Narendra Modi and Union Home Minister Amit Shah, accusing them of appointing Ms Buch as the chairperson of the SEBI. Mr Khera raised concerns, asking whether Mr Modi had a deal with Ms Buch to ensure her businesses would remain unaffected by the government or SEBI.

He added that this was just the first door to be opened, and many more doors would open, revealing even more.  

(By arrangement with livemint.com)