`SEBI chief's deeds outright corruption, not just conflict of interest'

The Congress Party's media and publicity head Pawan Khera on Friday claimed that the SEBI chair Madhabi Puri Buch's alleged financial irregularity was not just a “conflict of interest, but out-and-out corruption.”

At a press conference, Mr Khera alleged that Ms Buch and her husband owned a company called Carol Info Services, whose affiliate Wockhardt Ltd has the same promoters. “The question is, there is a company in Mumbai in the name of Madhabi Puri Buch and her husband. The company is called Carol Info Services Ltd. This is a part of a company called Wockhardt Ltd, they have the same promoters.”

He noted, “Wockhardt is a company to which the SEBI has been continuously giving orders and dealing with its cases. 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.”

“I would call it corruption. This is not just conflict of interest, this is out and out corruption,” he claimed.

SEBI staff's protest

On Thursday, a large group of SEBI employees staged a silent protest outside the SEBI headquarters in Mumbai demanding the resignation of Ms Buch. The protesters did not speak to the media, but a handout from the group called for the withdrawal of a press release issued by SEBI the previous day and also demanded Buch's resignation. The employees assembled in front of the building, standing for approximately 90 minutes before dispersing.

On Tuesday, the Congress questioned ICICI Bank's claim that it had not paid any salary or granted ESOPs to Ms Buch after her retirement. They asked why the payments described as her "retiral benefit" were inconsistent in both frequency and amount.

In a press release on Thursday, the SEBI said: "The SEBI apprehends that the junior officers have been receiving messages from external elements outside their group, effectively instigating them to 'go to media, go to the ministry, go to the board', perhaps to serve their own purpose. In fact, the letter of August 6, 2024, was not sent by the Sebi employee associations to the Government (and a section of the media)," the statement noted.

Madhabi's `retiral benefits'

Moreover, the opposition party had previously raised new conflict-of-interest allegations against Ms Buch. It alleged that since Ms Buch took office in 2017, she has not only been drawing a salary from the SEBI but has also been holding an office of profit at the ICICI Bank, continuing to receive income from the bank.  The bank said it has not paid any salary or granted ESOPs to Ms Buch after her retirement on October 31, 2013, as alleged by the Congress.

(By arrangement with livemint.com)