Cong levels fresh conflict of interest allegations against SEBI chief, questions PM Modi

New Delhi: 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.

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.

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.

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 Govt. of…

— Jairam Ramesh (@Jairam_Ramesh) September 2, 2024

"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 PM, 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 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 senior Congress leader said.

Addressing a press conference at the AICC headquarters here, Congress' media and publicity department head Pawan Khera said that Buch was a whole 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.

"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, he claimed.

This is in violation of Section 54 of the SEBI (Employees' Service) Regulations, 2001, he said.

Between 2017-2024, as a whole time member and later as the SEBI chairperson, she also received income from ICICI prudential amounting to Rs 22.41 lakh, Khera alleged.

This is again in violation of Section 54 of the SEBI (Employees' Service) Regulations, 2001, he added.

Between 2021-2023, the current SEBI chairperson was also in receipt of ESOP from ICICI Bank amounting to Rs 2.84 crore, Khera alleged and said this is in violation of Section X of the ICICI Employees Stock Option Scheme 2000.

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.

The said TDS amount is chargeable under salary and is again in violation of the SEBI Code of Conduct, Khera 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.

In Summary, the total amount received by the SEBI chairperson from ICICI from her time of joining SEBI in 2017 up until today totals to Rs 16,80,22,143 which is shockingly 5.09 times the income she received from SEBI during the same period which amounts to Rs 3,30,28,246, the Congress alleged in its statement.

The Congress' 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 and her husband have denied the allegations levelled against them as baseless and asserted that their finances are an open book.

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