Cong levels new charges against Sebi chief, asks PM to come clean

The Congress on Monday levelled fresh conflict of interest allegations against Sebi Chairperson Madhabi Buch and asked Prime Minister Narendra Modi to come clean as the head of the appointments committee of the cabinet on her appointment.

The opposition party said the Supreme Court should take cognisance of these fresh revelations and demanded that the Securities and Exchange Board of India (Sebi) chairperson should be dismissed immediately.

At a press conference, the Congress alleged that since the current Sebi chairperson took office in 2017, she has not only been drawing a salary from Sebi but has also been holding an office of profit at the ICICI Bank, continuing to receive income from them to this very day.

 

There was no immediate response from Buch or the ICICI bank on the allegations.

Congress president Mallikarjun Kharge said since the Sebi chairperson was appointed by the Narendra Modi-Amit Shah-led committee (appointments committee of the cabinet), they cannot absolve themselves, from the new revelations involving charges of corruption.

"Narendra Modi ji, for 10 years, you have tried your best to crush the autonomy and independence of India's long-standing institutions to help your crony friends! We saw this in the case of appointments in CBI, ED, RBI, CEC; now we are facing the same in Sebi," Kharge said in a post on X. 

 

"You have appointed the first lateral entry chairperson of Sebi without any due diligence, this has put a black stain on its reputation and belittled the integrity of the market regulator. After all, Sebi protects the hard-earned money of small and middle-income investors," he said.

"We demand that -- Hon'ble Supreme Court should take cognisance of these fresh revelations. Sebi chairperson should be dismissed immediately. There should be a JPC investigation of the Adani Mega Scam," Kharge said.

Congress general secretary in-charge communications Jairam Ramesh said serious questions have been raised over the conflict of interest of the Sebi chairperson in the regulatory body's Supreme Court-mandated investigations into violations of securities laws by the Adani Group.

"These questions seem to have been simply brushed aside by the Government of India. Now comes this fresh revelation of shocking illegality," Ramesh said in a post on X.

"The non-biological PM, who has been complicit in providing cover to the Sebi chairperson through his silence, must come clean and answer the following questions -- What is the fit and proper criteria for appointment of heads of regulatory bodies?" he said.

Has the Appointments Committee of the Cabinet (ACC), headed by the prime minister, gone through these shocking facts about the Sebi Chairperson or is the ACC completely outsourced to the PMO, he asked.

Ramesh also questioned whether the prime minister was aware that the Sebi chairperson was holding an office of profit and receiving salary/income from ICICI during her time at Sebi.

"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 (employee stock ownership plan) benefits from ICICI even though they had lapsed long ago?" he said.

Who is protecting the Sebi chairperson and why, Ramesh further asked.

"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," the Congress leader said.

Addressing a press conference at the AICC headquarters here, Congress' media and publicity department head Pawan Khera said Buch was a full-time member of Sebi from April 5, 2017, to October 4, 2021, and the chairperson from March 2, 2022, onwards.

"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," he alleged.

There have been multiple conflicts of interest involving the Sebi chairperson, he said.

In summary, the total amount received by the Sebi chairperson from ICICI from her time of joining Sebi in 2017 up until today totals Rs 16.8 crore which is shockingly 5.09 times the income she received from Sebi during the same period which amounts to Rs 3.3 crore, the Congress alleged in its statement.

Between 2021-2023, the current Sebi chairperson was also in receipt of TDS on the ESOP that was paid by ICICI Bank amounting to Rs 1.10 crores, he said.

"This is a case of escapement of income tax as the benefit of TDS on ESOP paid by ICICI Bank is a prerequisite and again is liable for tax. This tax escape is Rs 50 lakh," he alleged.

The Congress's fresh allegations come days after Hindenburg Research launched a fresh broadside against market regulator Sebi chairperson Buch, alleging that she and her husband had stakes in obscure offshore funds used in the Adani money siphoning scandal.

Sebi Chairman Buch had denied the allegations levelled against them as baseless and asserted that their finances are an open book.

Adani Group had also termed Hindenburg allegations as malicious and manipulative of select public information, saying it has no commercial relationship with the Sebi chairperson or her husband.