Sep 15, 2024 12:39 AM IST
The Congress leader added that such transactions violate section 6 of Sebi’s Code on Conflict of Interest for Members of Board (2008).
New Delhi: The Congress party on Saturday launched a fresh attack on Securities and Exchange Board of India (Sebi) chairperson Madhabi Puri Buch, accusing her of trading in listed securities and also investing in funds focused on Chinese companies.
“Following a series of disclosures revealing various conflicts of interest involving the Sebi chairperson and her spouse, we are here today to unveil even more shocking details. This time, these conflicts of interest move beyond the borders of India. First, between 2017-2023, Ms Madhabi P Buch, as a whole-time member and later as the Sebi chairperson, traded in listed securities worth ₹36.9 crores,” said Congress’s media head Pawan Khera.
The Congress leader added that such transactions violate section 6 of Sebi’s Code on Conflict of Interest for Members of Board (2008).
The Congress also said that it has information that “between 2017-2021, Madhabi P Buch held foreign assets and made investments in four funds in the US between 2001 to 2004.
In a statement, the Congress leader alleged that Buch invested in Vanguard Total Stock Market ETF (VTI), ARK Innovation ETF (ARKK), Global X MSCI China Consumer (CHIQ) and Invesco China Technology ETF (CQQQ) funds.
“It is deeply concerning to learn that Ms Madhabi P Buch, the SEBI Chairperson, has been investing in Chinese funds. When the Prime Minister of India can publicly give China a clean chit, it’s hardly surprising that a key regulatory figure is engaging in investments linked to China,” Khera said.
The Congress also questioned Prime Minister Narendra Modi in this context and asked, “Is the PM aware that the Sebi chairperson has been trading in listed securities while in possession of Unpublished Price Sensitive Information?”
Khera also asked, “Is the PM aware that Ms Madhabi P Buch has made high value investments outside India? If yes, what is the date of this investment and date of disclosure? Is the PM aware that the Sebi chairperson has been investing in Chinese firms at a time when India is facing geopolitical tensions with China?”
Since September 2, the Congress has made several allegations against Bunch, and had asked if the current Sebi chairperson drew an income of Rs. 16.8 crores from ICICI Bank and ICICI Prudential (In the form of salary, ESOPS, TDS on ESOPs) while also drawing a salary from Sebi. This, the Congress alleged, happened when “Sebi was also adjudicating complaints against ICICI and its affiliates during this period.”
The party also disclosed that Madhabi Buch rented her property to ‘Carol Info Services Limited’, an affiliate of Wockhardt Limited, between 2018-2024. Wockhardt has been under Sebi’s investigation for cases including that of insider trading.
The Congress also said that Buch “still holds a 99% stake in in Agora Advisory Pvt Ltd and the company has actively provided consultancy/advisory services, receiving ₹2.95 Crores from six Sebi-regulated entities between 2016-2024”.
Buch has so far maintained that she has adhered to all disclosure and recusal guidelines set by the markets regulator.
In a statement, Buch also said that “since joining SEBI as a whole-time member in 2017”, Madhabi Puri Buch “consistently disclosed shareholding in Agora Advisory and also transparently declared her shareholding in Agora Partners.”
On the allegation of rental income, the Buchs said, “There have been questions raised regarding the rental income received from a property owned by Madhabi and Dhaval. The property was leased out in the normal course. As it turned out subsequently, the lessee happened to be an associate of Wockhardt, a listed company which had come under investigation. Madhabi has not dealt with any files related to Wockhardt.”
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