India's Congress party on Friday (September 6) accused SEBI chairperson Madhabi Puri Buch of receiving rental income from a company linked to Wockhardt Limited, a firm under investigation by SEBI for insider trading and other violations. According to Congress, this breaches SEBI’s 2008 conflict of interest guidelines for board members.
Pawan Khera, head of Congress’ media and publicity department, claimedthat between 2018 and 2024, Buch received ₹2.16 crore ($257,220) in rental payments from Carol Info Services Limited, a company connected to Wockhardt Limited. Khera raised this issue during a press briefing at the AICC headquarters in New Delhi, pointing out that SEBI was investigating Wockhardt in 2023, including a case of insider trading.
“The SEBI chairperson was appointed on March 2, 2022, by the Appointments Committee of the Cabinet, which the Prime Minister heads. Was her appointment cleared on the condition that she could maintain her previous financial relationships, provided she acted in line with the wishes of the prime minister and his close associates?” the Congress leader asked.
Khera contrasted Buch’s actions with previous SEBI chairpersons, who, he said, took steps to avoid any appearance of a conflict of interest. “For instance, M. Damodaran sold his 50 SBI shares when he took over UTI in 2001, and CB Bhave recused himself from all matters involving the National Securities Depository Limited (NSDL), where he was formerly chairman. In contrast, Ms. Buch merely transferred her investments to her spouse, which raises concerns about credibility,” hesaid.
Congress general secretary Jairam Ramesh placed the blame squarely on Prime Minister Narendra Modi, asking why he had not taken action and whether more evidence of a lack of transparency and integrity in the capital markets regulator was needed.
“By the NSE’s data, there are now 10 crore Indians with unique PANs who have some form of investment in this market. Don’t they deserve better? Why does he not move? What is he afraid of?” Ramesh said in a post on X.
Meanwhile, the Public Accounts Committee (PAC) of Parliament has announced plans to look into the functioning of regulatory bodies set up by Acts of Parliament, including SEBI. PAC Chairman K C Venugopal stated that the committee will decide whether to summon Buch to address these allegations.
Congress has also raised concerns over payments Buch allegedly received from her former employer, ICICI Bank, after joining SEBI, calling for a separate investigation into the matter.
(With inputs from agencies)