SEBI Chief Madhabi Puri Buch Draws 16.8 crore Salary from ICICI Bank too? Says Congress

In a significant political development, the Congress party has made fresh allegations against Securities and Exchange Board of India (SEBI) Chairperson Madhabi Puri Buch, claiming she received substantial financial compensation from ICICI Bank and ICICI Prudential during her tenure as SEBI chief. Congress spokesperson Pawan Khera claimed that between 2017 and 2024, Buch earned over ₹12 crore from ICICI Bank while also receiving ₹22.41 crore from ICICI Prudential. Additionally, she allegedly benefited from Employee Stock Ownership Plans (ESOPs) worth over ₹2 crore from ICICI Bank.

The allegations by Congress’s Pawan Khera have fueled further controversy surrounding SEBI’s investigation of the Adani Group, particularly in light of a recent report by Hindenburg Research, which accused SEBI of not thoroughly investigating the conglomerate’s alleged malpractices.

Conflict of Interest Allegations

During a press conference,  Pawan Khera questioned the SEBI chief Madhabi Puri Buch‘s financial ties with ICICI Bank while serving in a regulatory role. “SEBI’s chairperson is responsible for overseeing the regulation of the stock market, where millions of people invest their money. If she was receiving compensation from ICICI Bank and Prudential while serving as SEBI chairperson, it raises serious concerns about a conflict of interest,” Khera remarked. He further questioned the process behind Buch’s appointment, highlighting that the Appointments Committee of the Cabinet, headed by the Prime Minister and Union Home Minister Amit Shah, had played a key role.

Hindenburg Research Report and SEBI’s Role

These accusations follow a bombshell report released by Hindenburg Research, a US-based short-seller, in January 2023. The report alleged that the Adani Group had engaged in stock-price manipulation, undisclosed related-party transactions, and a violation of public shareholding norms. The claims rocked the Indian financial markets, with Adani’s infrastructure empire vehemently denying the allegations. However, the fallout led the Supreme Court to investigate the group, tasking SEBI with the responsibility.

Hindenburg Research further claimed that Madhabi Puri Buch’s ties to offshore funds, in which she and her husband Dhaval Buch were allegedly invested, had compromised SEBI’s ability to investigate the Adani Group impartially.

SEBI’s Probe into Adani Group

SEBI’s investigation into the Adani Group has faced scrutiny. A panel of experts recently concluded that the inquiry into 42 offshore investors tied to Adani had become a “journey without a destination.” The panel, appointed by the Supreme Court, raised concerns that SEBI had not made significant progress in identifying the true owners of these opaque vehicles.

Political and Regulatory Implications

The latest allegations by Congress Pawan Khera could intensify political pressure on SEBI and its leadership, casting doubts over the regulatory body’s integrity. With Madhabi Puri Buch’s financial connections to ICICI Bank and ICICI Prudential now in the spotlight, questions are being raised about the transparency of her decision-making process and whether there were any biases in SEBI’s handling of the Adani-Hindenburg investigation.

As the situation unfolds, these claims could further affect public trust in India’s financial regulatory system. Congress has called for a deeper probe into Buch’s financial dealings to ensure that SEBI’s autonomy and credibility remain intact.