Congress Alleges Conflict Of Interest: Sebi Chair Madhabi Puri Buch Accused Of Dual Income

The Congress party has raised significant concerns regarding alleged financial conflicts involving Securities and Exchange Board of India (Sebi) Chairperson Madhabi Puri Buch.

The party claims that Buch has been receiving income from ICICI Bank while serving as a full-time member of Sebi, potentially violating regulatory standards.

Photo Credit: PTI

Allegations of Dual Income

During a press conference in Delhi, Congress leaders accused Buch of drawing a salary from Sebi while simultaneously receiving payments from ICICI Bank. According to the Congress, Buch has been earning from ICICI Bank since her appointment as a Sebi member in 2017, despite the regulations prohibiting such dual income streams. Pawan Khera, a Congress spokesperson, highlighted that Buch's total income from ICICI Bank during this period amounted to Rs 16.8 crore, significantly surpassing her Rs 3.3 crore salary from Sebi.

Khera asserted that Buch's receipt of dual payments constitutes a breach of Section 54 of Sebi's regulatory framework, which mandates that members should not engage in any other financial activities that could lead to a conflict of interest. The Congress has called on Prime Minister Narendra Modi to address these concerns and clarify the appointment criteria for regulatory bodies.

Calls for Prime Minister's Response

Jairam Ramesh, Congress General Secretary in-charge of communications, emphasized the gravity of the allegations, particularly in light of the ongoing Supreme Court-mandated investigations into alleged violations by the Adani Group. Ramesh criticized the Government of India for allegedly ignoring these serious questions and called for a transparent review of Buch's appointment and financial dealings.

Hindenburg Research Report

The Congress's allegations follow recent claims by Hindenburg Research, a US-based short-seller firm, which suggested that Buch and her husband, Dhaval Buch, had stakes in obscure offshore entities linked to the alleged Adani money siphoning scandal. The Buchs have denied these allegations, stating that their investments in the mentioned fund were made prior to Madhabi Buch's tenure at Sebi.

Public and Professional Scrutiny

On the same day as the press conference, Buch attended a Confederation of Indian Industry event where she discussed real estate investment trusts (REITs). Buch indicated that discussing REITs might lead to further accusations of conflict of interest, referencing the scrutiny she is currently facing from various quarters, including Hindenburg Research.

Financial Implications and Regulatory Oversight

The Congress party's allegations and the associated scrutiny come at a time when Buch is actively involved in critical regulatory oversight. The dual-income claims, if substantiated, could impact the ongoing investigations and regulatory decisions related to major financial scandals.

As the controversy continues to develop, both the Congress party and the public are calling for a thorough investigation into Buch's financial activities and potential conflicts of interest. The outcome of this scrutiny will likely have significant implications for regulatory practices and oversight within India's financial sector.