The Congress party on Friday claimed that SEBI chairperson Madhabi Puri Buch received rental income from an entity affiliated with Wockhardt Limited, a company under regulator's investigation for insider trading and other violations. This, Congress argues, is a clear violation of SEBI’s 2008 Code on Conflict of Interests for Board Members.
The Congress' media and publicity department head Pawan Khera alleged that between 2018 and 2024, Buch, first as SEBI’s whole-time member and later as its chairperson, received ₹2.16 crore from Carol Info Services, a company affiliated to Wockhardt Limited.
The Congress accused Buch of maintaining this financial relationship while overseeing SEBI's investigation into Wockhardt, which they say constitutes a glaring conflict of interest.
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"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.
They are now calling for her immediate dismissal and an independent probe into her conduct, raising questions about her impartiality and the transparency of SEBI under her leadership.
{{/usCountry}}They are now calling for her immediate dismissal and an independent probe into her conduct, raising questions about her impartiality and the transparency of SEBI under her leadership.
{{/usCountry}}Also Read | Allegations against Sebi chief Madhabi Puri Buch to be investigated: Report
Congress general secretary in-charge communications Jairam Ramesh said the question really had to be asked of Prime Minister Narendra Modi and no one else on how much more evidence was needed to show the collapse of transparency and integrity, as far as the capital markets regulator was concerned.
"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.
PAC to decide on calling Sebi chief Madhabi Buch
Amid the ongoing political storm over allegations of conflict of interest against Buch, the Parliament’s Public Accounts Committee (PAC) has decided to investigate regulatory bodies established by Acts of Parliament.
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The Public Accounts Committee (PAC) Chairman K C Venugopal said the Committee will take a decision on summoning Buch for examination of allegations against her.
"Rest of the things, the Committee has to take a decision," Venugopal said to questions on summoning the SEBI chairperson before the PAC.
The Congress has questioned payments made to Buch made by the ICICI Bank, her former employer, after she became a whole time member of SEBI, and sought an independent probe into the matter.