Amid the ongoing controversy surrounding allegations against Securities and Exchange Board of India (SEBI) Chairperson Madhabi Buch, the Congress on Thursday called for an independent inquiry, stating it is in the national interest. The opposition expressed concerns that foreign investors are increasingly worried and that trust in India’s stock markets is being undermined.
The Congress emphasised that only an objective, independent investigation, with Buch temporarily stepping aside from her role, would restore confidence in the stock markets and the wider economy.
Praveen Chakravarty, Chairman of the Professionals’ Congress and Data Analytics, remarked that “lots of skeletons are tumbling out of the SEBI cupboard”.
“On 10 August, a foreign research firm issued a report with allegations against the SEBI chairperson and her family regarding offshore funds, for which they claimed to have documentary evidence. This allegation was made by a research firm, not by any political party. In response, a cabinet minister of the Modi government addressed the issue,” he said at a press conference at the AICC headquarters.
Chakravarty asked why the government responded to allegations made by a foreign research firm against an individual at SEBI.
“SEBI Chairperson Madhabi Puri Buch is not responding, but ICICI is. Why?”
He then mentioned a letter signed by 500 SEBI officers, addressed to the Centre, which described the working environment under Buch’s leadership as “toxic, abusive, and fearful.”
“Today, a news report says that Ms. Madhabi Puri Buch did have two employments when she was at ICICI. She was also employed in a private equity fund called Greater Pacific Capital… Ms. Buch may have been recruited as a finance professional, but this raises a long list of allegations and questions. Doesn’t it raise more concern?” he said.
The Congress leader pressed for an impartial investigation, questioning why there is reluctance in conducting such an inquiry.
“As a former financial professional myself, I have received several calls from foreign investors asking, ‘What is the status of the market regulator? Can we trust India’s securities market? What is happening with the integrity of the market regulator?'” he said.
“We want foreign capital in our stock market. This is too important for the country; it is a national issue. The real question is: Who is being protected here? Why is the ED silent on Madhabi Puri Buch?” he said.
“This is a national issue. If foreign investors are getting concerned and there are doubts about the integrity of India’s stock markets because of a series of allegations against the chairperson of the market regulator, is it not in the national interest to conduct an inquiry to get to the root of this matter and resolve it,” Chakravarty said.
Earlier in the week, the Congress raised fresh conflict of interest accusations against Buch, asking Prime Minister Narendra Modi to address the situation, given his role as the head of the appointments committee. They demanded that the SEBI chairperson be dismissed immediately and urged the Supreme Court to take notice of these developments.
During a press conference, the Congress alleged that since taking office in 2017, Buch has not only been receiving a salary from SEBI but has also held an office of profit at ICICI Bank, and continuing to receive income from the bank.
The ICICI Bank denied these claims, and said that they had not paid Buch any salary or granted ESOPs after her retirement on October 31, 2013. The Congress, however, questioned the bank’s explanation, pointing out irregularities in the frequency and amount of payments if they were indeed “retiral benefits.”
