Informist, Saturday, Sep 14, 2024

NEW DELHI – Levelling fresh allegations against the Securities and Exchange Board of India Chairperson Madhabi Puri Buch, the Congress has claimed that Buch traded in listed securities worth 369.63 mln rupees from 2017 to 2023 while holding the office of SEBI whole-time member and chairperson. This is in violation of Section 6 of the SEBI Code on Conflict of Interest for Members of Board, Congress Spokesperson Pawan Khera said.

As per Section 6 of the Code on Conflict of Interest for the SEBI board, members should not deal in securities of a company listed on a recognised stock exchange based on unpublished price-sensitive information which they may have got access to on account of their position. Buch joined the regulatory body as a whole-time member in 2017 and was elevated to the position of chairperson in February 2022.

Khera targeted the government and asked, "Is the prime minister aware that the SEBI chairperson has been dealing, trading in listed securities while in possession of unpublished price-sensitive information?"

The Congress also alleged that Buch invested in assets of foreign companies, including those of Chinese firms. Khera asked if the head of India's apex market regulator had declared that she held assets in foreign companies. "Is the prime minister aware that the SEBI chairperson has been investing in Chinese firms when India has been facing geopolitical tensions with China?"

The Congress has launched a series of allegations against Buch after the US-based short-seller Hindenburg Research accused her of egregious conflict of interest in her capacity as SEBI member and chairperson since 2017 in connection with her role in an investigation into the Adani Group.

In August, Hindenburg had alleged that SEBI's unwillingness to take meaningful action against suspect shareholders in the Adani Group stemmed from Buch's complicity in using the same funds used by Vinod Adani, brother of Gautam Adani.

Previously, the Congress had said that Buch had "wilfully lied" that her consultancy services company Agora Advisory went dormant after 2017. The company instead earned a fee of 29.5 mln rupees over 2016-17 (Apr-Mar) and 2019-20 to 2023-24, Congress alleged.

Buch had refuted these allegations and had said that it was unfortunate that questions were raised about the consulting assignments of her husband, Dhaval Buch, and the firms Agora Advisory in India and Agora Partners in Singapore.

"We are questioning what were you doing? Why were you lying when you said Agora was a dormant company? It was not a dormant company," Khera said. "Is it true that Ms. Madhabi P. Buch was actively involved in Agora Partners PTE Singapore as she was the signatory in the bank account."

The Congress party is waiting for the prime minister and the finance minister to take action against Buch, Khera said. The political party spokesperson, hinting at their next set of allegations, ended with the question, "Have you (Buch) or your family been dealing with companies that had their names in Panama Papers and Paradise Papers? We will either wait for your answer or bring the answer ourselves?"

Both the Panama Papers and the Paradise Papers are lists of leaked documents that reveal widespread tax evasion, money laundering, and secretive financial dealings by global leaders, politicians, and wealthy individuals through complex networks of offshore shell companies and tax havens. End

Reported by Krity Ambey

Edited by Deepshikha Bhardwaj

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