Congress accuses SEBI chief of conflict of interest over Rs 2.16 cr rental income

PTC News Desk: The Congress party has leveled fresh allegations against SEBI Chairperson Madhabi Puri Buch, claiming that she received rental income from an entity linked to Wockhardt Limited, a company under SEBI’s scrutiny for insider trading and regulatory violations. The Congress argues that this financial relationship breaches SEBI’s 2008 Code of Conduct regarding conflicts of interest for board members.

Pawan Khera, the head of Congress’ media and publicity department, alleged that between 2018 and 2024, Buch, while serving first as SEBI’s whole-time member and later as its chairperson, earned Rs 2.16 crore from Carol Info Services, a company connected to Wockhardt Limited. The Congress claims this financial tie continued while Buch oversaw SEBI’s investigation into Wockhardt, presenting a conflict of interest.

Khera further questioned Buch’s appointment as SEBI chairperson on March 2, 2022, by the Appointments Committee of the Cabinet, headed by Prime Minister Narendra Modi. “Was her appointment cleared on the condition that she could maintain previous financial relationships as long as she acted in line with the prime minister’s wishes?”

Khera asked. The Congress is now demanding Buch’s immediate removal and an independent investigation into her actions, questioning the transparency and impartiality of SEBI under her leadership.

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Jairam Ramesh, Congress General Secretary in charge of communications, also criticised the situation, placing responsibility on Prime Minister Modi. He argued that with 10 crore Indians now investing in the markets, there is a greater need for transparency in SEBI’s leadership. “Why does the prime minister not act? What is he afraid of?” Ramesh asked in a social media post.

Meanwhile, the Parliamentary Public Accounts Committee (PAC) is set to investigate the functioning of regulatory bodies like SEBI. The PAC, chaired by K.C. Venugopal, will soon decide whether to summon Buch for questioning regarding the conflict of interest allegations.

The Congress has also raised concerns about payments made to Buch by ICICI Bank, her former employer, after she became a whole-time member of SEBI, calling for an independent probe into this matter as well.

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