Exclusive | SEBI chief Buch under fire; Subramanian Swamy alleges conflict of interest in Axis-Max Life deal

Indian former Union Minister Subramanian Swamy has made fresh allegations against embattled SEBI chief Madhabi Puri Buch. During a recent case hearing of the Axis-Max Life deal at the Delhi High Court, Swamy alleged a lack of action from the market regulator SEBI. He credited this to a potential conflict of interest on Buch's part.

The case

The case in the Delhi High Court involves regulatory scrutiny of transactions between Axis Bank and Max Life Insurance Company.

In February 2024, Bharatiya Janata Party leader Subramanian Swamy filed a public interest litigation (PIL) in the Delhi High Court against Axis Bank and Max Life Insurance Company. The PIL alleged that Axis Bank made undue profits of about ₹4,000 crore ($477 million) from the sale and purchase of Max Life shares between February 2016 and April 2021.

It came into the limelight due to allegations that SEBI's actions might be compromised.

Swamy, in an affidavit dated March 13, highlighted that Madhabi Puri Buch, the SEBI chairperson, served as the director at Max Healthcare Institute Ltd from February 2015 to April 2017.

The former union minister argued that this past affiliation of Buch's might have contributed to a delay in the market regulators' investigation into the alleged misconduct.

SEBI, however, has maintained that its inquiry into the deal is progressing. In an affidavit, the market regulator has asserted that the preliminary investigation is at an advanced stage.

The court acknowledged that the SEBI chairperson, despite the personal allegation, was not listed as a respondent in the petition. Regardless of any previous professional ties, the court highlighted that SEBI must regulate the case as per legal standards. Swamy's PIL was dismissed by the court, but the regulatory bodies were instructed to speed up their investigations and enforce the law.

(With inputs from agencies)