Congress accuses Buch of conflict of interest, financial ties to ICICI Bank

In a startling revelation, the Congress party has raised serious concerns about a potential conflict of interest involving SEBI chairperson Madhabi Puri Buch, who is responsible for regulating India's financial markets.

At a press conference in New Delhi, Congress spokesperson Pawan Khera alleged that Buch received a salary/income from ICICI Bank while holding a key position at SEBI, casting doubt on the regulator's impartiality and independence.

Khera asserted that this situation represents a grave breach of ethics and accountability in public service. He emphasised that the integrity of SEBI, which is tasked with safeguarding the interests of millions of investors, is now under question.

"How can one ensure fair regulation when the head of SEBI is financially tied to a private entity like ICICI Bank," Khera asked, underscoring the urgent need for transparency within the regulatory body.

"Madhabi Buch is the regulator of the market, the chairperson of SEBI, yet how can she take a salary from ICICI Bank? Why did she take Rs 22,41,000 from ICICI Prudential between 2017-2024," the Congress spokesperson asked.

Buch, who joined SEBI in 2017 and was appointed as its chairperson in 2022, has yet to respond to these allegations publicly. The Congress party's accusations suggest that several investigations into ICICI Bank were possibly compromised during her tenure due to her financial ties with the bank.

Khera further hinted that this disclosure is merely the beginning. "The revelations made by the Congress party are just the tip of the iceberg," he stated. "We are determined to uncover the real 'Shatranj ka asli Khiladi' (the true mastermind) behind this chessboard of corruption."

The Congress party also took aim at Prime Minister Narendra Modi and home minister Amit Shah, who are part of the Appointments Committee of the Cabinet (ACC) responsible for Buch’s appointment.

Khera questioned their role in this matter, asking why Buch, while being a full-time SEBI member, continued to receive a substantial income from ICICI Bank. "This is a clear conflict of interest, and the Prime Minister and Home Minister must answer for it," he declared.

Adding to the allegations, senior Congress leader Jairam Ramesh pointed out that concerns were also raised during the Supreme Court-mandated investigations into the Adani Group's alleged violations of securities laws. "These serious concerns appear to have been dismissed by the government. Now, with these new revelations of shocking illegality, the so-called 'non-biological PM' must break his silence and provide answers," Ramesh demanded.

As the controversy deepens, pressure is mounting on both SEBI and the government to address these allegations and ensure that the integrity of India's financial markets remains intact.

Asking "who is protecting the SEBI Chairperson and why?" Ramesh posed 5 questions on behalf of the Congress party:

1.What is the fit and proper criteria for appointment of heads of regulatory bodies?

2. Has 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?

3. Was the Prime Minister aware that the SEBI chairperson was holding an office of profit and receiving salary/income from ICICI during her time at SEBI?

4. 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?

5. Why did the current SEBI chairperson continue to receive ESOP benefits from ICICI even though they had lapsed long ago?

It is worth recalling here that US-based firm Hindenburg Research on August 10, published a report alleging that SEBI Chairperson Madhabi Buch and her husband, Dhaval Buch, previously held investments in offshore funds linked to the Adani Group.

The report highlights that the Bermuda-based Global Opportunities Fund, which the Financial Times identified as being used by entities connected to the Adani Group for trading in its own shares, had several sub-funds.

According to whistleblower documents cited by Hindenburg Buch and her husband invested in one of these sub-funds in 2015 and exited the investment in 2018. Hindenburg report suggested that this connection may be the reason behind slow pace of investigation by the SEBI into Adani Group and the offshore funds associated with it.