India: Congress slams PM Modi, questions whether he was aware of SEBI chair Buch’s ‘conflict of interest’

India's largest opposition party, the Indian National Congress (INC), on Monday (Sep 2) levelled fresh allegations against SEBI chairperson Madhabi Buch and Prime Minister Narendra Modi.

The party called on PM Modi to clarify Buch's appointment as the head of the market regulator.

Conflict of Interest

Add WION as a Preferred Source

At a press conference, Congress accused Buch of receiving income from ICICI Bank while serving as SEBI chairperson, which they argue constitutes a serious conflict of interest.

The party claimed that "Between 2017-2021, as a whole time member of SEBI, the current SEBI chairperson received a salary from ICICI Bank amounting to Rs 12.63 crore ($1.5 million)".

Congress general secretary in charge of communications, Jairam Ramesh, also alleged that in addition to this, she received income from ICICI Prudential amounting to Rs 22.41 lakh (around $27k), along with other incomes.

Congress alleged that Buch received INR 16,80,22,143 (over 2 million dollars) in total from ICICI. This, the party said, is around 5.09 times the income Madhabi Buch received from SEBI during the same period — INR 3,30,28,246 (over 393,000 dollars).

"The Securities and Exchange Board of India (SEBI) is entrusted with safeguarding the hard-earned money of the Indian middle class, which painstakingly saves every penny that it can, to invest in the hope of a secure future. Yet, while the people place their hopes in SEBI, whose chairperson is appointed directly by the Prime Minister of India, they appear to have been conning us all along," alleged Congress' media and publicity department head Pawan Khera.

Did PM Modi know?

Congress leader Ramesh also questioned whether PM Modi was aware of Buch's benefits from ICICI.

"Was the Prime Minister aware that the current SEBI Chairperson as a whole-time member of SEBI was adjudicating complaints against ICICI and its affiliates while also receiving income from ICICI? Why did the current SEBI Chairperson continue to receive ESOP benefits from ICICI even though they had lapsed long ago?," he asked.

He further questioned that who was protecting the SEBI chairperson and why, and commented: "The non-biological PM cannot continue this indefinite stonewalling. Capital markets, in which crores of Indians make their investment, demand full transparency and integrity on the part of their regulator".

ICICI's statement

Later in the day, ICICI released a statement clarifying it had paid no salary to Buch after her retirement.

"ICICI Bank or its group companies have not paid any salary or granted any ESOPs to Ms Madhabi Puri Buch after her retirement, other than her retiral benefits," said the bank.

"All the payments made to Ms Buch post her retirement had accrued to her during her employment phase with the ICICI Group. These payments comprise ESOPs and retiral benefits," the statement added.

(With inputs from agencies)