Congress Accuses SEBI Chief Madhabi Puri Buch of Conflict of Interest, Demands Explanation from PM Modi
New Delhi, September 2: The Congress party has once again targeted Madhabi Puri Buch, the Chairperson of the Securities and Exchange Board of India (SEBI), accusing her of holding a position of profit while serving at SEBI. The party claims that Buch received ₹16.80 crore from ICICI Group while being a full-time member and later the chairperson of SEBI, which they allege is a serious violation of public service ethics and accountability.
Addressing a press conference in New Delhi, Congress spokesperson Pawan Khera questioned the propriety of Buch receiving regular income from ICICI Bank and ICICI Prudential during her tenure at SEBI. He called on Prime Minister Narendra Modi, who heads the Cabinet Appointment Committee, to provide a clear explanation on the matter.
"How can one ensure impartial regulation when the head of SEBI is receiving a salary from a private entity like ICICI Bank? When you work for one organization, you are supposed to be compensated by that organization alone. However, Madhabi Puri Buch continued to receive regular income from ICICI Bank, ICICI Prudential, and ESOPs between 2017 and 2024 while serving as a full-time member of SEBI. This is a blatant violation of Section 54 of SEBI," Khera stated.
Khera also highlighted the potential conflict of interest, noting that SEBI was conducting several investigations into ICICI Bank during the time Buch was allegedly receiving income from the group. He stressed the need for a thorough investigation to ensure the independence and integrity of regulatory frameworks.
Madhabi Puri Buch served as a full-time member of SEBI from April 5, 2017, to October 4, 2021, before being appointed as the chairperson on March 2, 2022.
Hindenburg Research Allegations
Before the Congress's allegations, U.S.-based short-seller Hindenburg Research had also accused Buch of a conflict of interest. The firm alleged that Buch and her husband, Dhaval Buch, had stakes in offshore entities involved in the Adani scandal. These claims were reportedly based on documents provided by a whistleblower and investigations conducted by other entities.
However, Madhabi Puri Buch and her husband dismissed these allegations, releasing a joint statement calling the claims baseless. They asserted that their lives and financial activities are "an open book" and that they have made all necessary disclosures to SEBI.
