SEBI Chief Madhabi Buch faces allegations, congress demands independent probe

Congress demanded an independent inquiry against SEBI chairperson Madhabi Buch into the matter, asserting that it is in the national interest. File
| Photo Credit: Reuters

Asserting that foreign investors are worried about the “integrity” of the Indian stock markets, the Congress on Thursday demanded an independent inquiry into the allegations against Securities and Exchange Board of India (SEBI) chairperson Madhavi Puri Buch.

Addressing a press conference, Praveen Chakravarty, who heads the All India Professional Congress, also referred to news reports about 500 officials writing a letter to the Union government to allege that the work environment under Ms Buch’s leadership is “toxic, abusive and fearful”.

The Congress leader asked why there was hesitation in conducting an impartial and objective inquiry into all the allegations.

Also Read: On SEBI chairperson’s conflicts of interests

National interest

“As a former financial professional myself, I have received several calls from foreign investors asking about the status of the market regulator… 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?” he asked.

“We [Congress] 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 Enforcement Directorate silent on Madhabi Puri Buch?” Mr. Chakravarty asked.

Also Read: SEBI blames ‘external forces’ for fuelling discontent among its staff, says they are well-paid but misguided

ICICI retirement payments

Referring to the Congress’s previous allegations that Ms. Buch was receiving income from ICICI Bank despite being a whole-time member of the SEBI Board, Mr. Chakravarty noted, “SEBI chairperson Madhabi Puri Buch is not responding, but ICICI is. Why?”

Denying the allegations, ICICI Bank had said that payments made to Ms. Buch were part of her retirement benefits and not regular income.

“Today, on September 5, 2024, we learnt through a news article that Ms. Buch, during her tenure at ICICI Bank between 2011 and 2013, was also employed at Greater Pacific Capital, a private equity fund where Mr. Shaurya Doval (son of National Security Advisor Ajit Doval) is a member of the leadership team. Ms. Buch may have been recruited as a finance professional, but given the long list of allegations and questions, it raises more concern,” Mr. Chakravarty said.

He also referred to the allegations made by Hindenburg Research about Ms. Buch and her husband having stakes in obscure offshore funds with alleged linkages to the Adani group. “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 noted.