Informist, Friday, Sep 6, 2024

NEW DELHI – In a fresh attack on Securities and Exchange Board of India Chairperson Madhabi Puri Buch, the opposition Indian National Congress today alleged that she received rental income of 21.6 mln rupees from an entity affiliated to a company that SEBI was probing in multiple cases, including insider trading.

Congress Media and Publicity Department Chairman Pawan Khera alleged that Buch rented her property in Mumbai to Carol Info Services Ltd, which is affiliated to Wockhardt Ltd, in 2018 when she was a SEBI whole-time member.

“Buch received 700,000 rupees as rent in 2018-19, and it shot up to 3.6 mln rupees in 2019-20. She received 3.9 mln rupees, 4.2 mln rupees, 4.4 mln rupees, and 4.6 mln rupees in 2020-21, 2021-22, 2022-23, and 2023-24, respectively,” Khera said, adding that SEBI was investigating four cases, including an insider trading case, against Wockhardt Ltd during 2023 and the cases were settled that same year, when Buch was chairperson of the market regulator. The total amount differs from the amount cited by Khera because the amounts have been rounded off to a single decimal place.

“This is not just a case of conflict of interest but a clear case of corruption," Khera said. "We want to ask Buch--was it legal, proper, and ethical to take the money?”

The Congress also raised questions on Prime Minister Narendra Modi and Home Minister Amit Shah for appointing Buch to the regulatory body. “Was the SEBI chairperson’s appointment in March 2022 approved with the understanding that she could maintain prior financial ties as long as she aligned with the prime minister’s wishes,” the Congress party asked.

Khera also questioned why there were no efforts to ensure that Buch adhered to conflict-of-interest standards, and whether the "oversight" was part of a mutually beneficial arrangement.

Congress General Secretary Jairam Ramesh asked how much more evidence was required to show the collapse of transparency and integrity at SEBI. “How much more evidence is needed to show the collapse of transparency and integrity, as far as the regulator of capital markets is concerned?" Jairam said. "By the NSE's data there are now 10 crore Indians with unique PANs (permanent account numbers) who have some form of investment in this market. Don't they deserve better? Why does he (Modi) not move? What is he (Modi) afraid of?”

Buch has been under fire of late with allegations of conflict of interest stemming from her personal holdings. In an Aug 10 report, US-based short-seller Hindenburg Research accused her of, among other things, egregious conflict of interest in her capacity as SEBI chairperson from Mar 2, 2022, and earlier as a whole-time member of the market regulator from Apr 5, 2017, to Oct 4, 2021, in connection with her role in an investigation into the Adani Group.

Hindenburg 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.

On Monday, the Congress alleged that Buch was holding an office of profit with ICICI Bank even after assuming office as whole-time member at the regulator in 2017 and received 168 mln rupees from the bank and associate companies. The Congress has demanded that Buch step aside to facilitate an impartial inquiry into all the charges of conflict of interest against her. End

Reported by Kuldeep Singh

Edited by Rajeev Pai

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