Mockery of public accountability: Congress attacks SEBI over RTI rebuff

The Congress has slammed SEBI's refusal to disclose instances when its chairperson Madhabi Buch recused herself due to conflict of interest and said that this makes a "mockery" of public accountability and transparency.

The cases where Buch recused herself due to potential conflict of interest is not "readily" available and collating them would "disproportionately divert" its resources, the securities market regulator said in an RTI response on Friday.

In the response furnished to transparency activist Commodore Lokesh Batra (retd), the regulator also refused to provide copies of Buch's declarations to the government and SEBI Board on the financial assets and equities held by her and her family members on the grounds of these being "personal information" and that their disclosure may "endanger" personal safety.

Reacting to the development, Congress general secretary in-charge communications Jairam Ramesh said, "The multiple conflicts of interest of the SEBI chairperson that have been revealed so far are shocking in themselves. Now in a move that adds more fuel to the raging fire, SEBI has simply refused to divulge information to a RTI activist on instances of the SEBI chairperson recusing herself on issues where there have been potential conflicts of interest."

"This makes a mockery of public accountability and transparency as far as SEBI is concerned," he said in a post on X late last night.

The SEBI has also denied to disclose the dates on which the disclosures were made. The SEBI Central Public Information Officer (CPIO) used the grounds of "personal information" and "safety" to deny a copy of those declarations.

"Since the information sought do not pertain to you and the same relates to personal information, the disclosure of which has no relationship to any public activity or interest and may cause unwarranted invasion into the privacy of the individual and may also endanger the life or physical safety of the person(s). The same is, therefore, exempt in terms of Section 8(1)(g) and 8(1)(j) of the RTI Act, 2005," the RTI response said.

"Further the information on cases where Madhabi Puri Buch recused herself due to potential conflicts of interest during her tenure is not readily available and collating the same will lead to disproportionately diverting the resources of the public authority in terms of Section 7(9) of the RTI Act," it said.

Section 8(1)(g) allows a public authority to withhold information the disclosure of which would endanger the life and physical safety of any person, while section 8(1)(j) allows withholding information which relates to personal information the disclosure of which has no relationship to any public activity or interest. A press release from SEBI on August 11 had claimed that the chairperson has recused herself in matters involving potential conflict of interest.

"It is noted that relevant disclosures required in terms of holdings of securities and their transfers have been made by the chairperson from time to time," it had said.

The US-based short seller Hindenburg Research had earlier alleged that it suspects SEBI's unwillingness to act against the Adani group may be because Buch had stakes in offshore funds linked to the conglomerate.

The Congress has levelled several conflict of interest allegations against Buch and her husband Dhaval Buch. Buch and her husband since have dismissed the charges as "motivated."