Congress Alleges SEBI Chairperson’s Conflict of Interest: Demands Resignation Over Financial Ties to ICICI Bank and Prudential

The Congress party reveals startling details about SEBI Chairperson Madhabi Puri Buch’s financial ties to ICICI Bank and Prudential, raising concerns about conflicts of interest and potential regulatory biases amidst the ongoing Adani controversy.

In a startling revelation, senior Congress leader Pawan Khera has leveled serious allegations against Madhabi Puri Buch, the current Chairperson of the Securities and Exchange Board of India (SEBI). Khera’s claims, delivered during a press conference, focus on Buch’s financial ties to ICICI Bank and ICICI Prudential while she held key regulatory positions within SEBI—a violation of SEBI’s Employee Service Regulation 2001 and India’s “Office of Profit” provisions.

Khera detailed Buch’s tenure as a Whole-Time Member of SEBI from April 5, 2017, to October 4, 2021, and her subsequent appointment as Chairperson of SEBI on March 2, 2022. According to Khera, during this time, Buch continued to receive a substantial income from ICICI Bank, amounting to ₹16.8 crores, in addition to payments from ICICI Prudential. This income, as highlighted by Khera, raises serious questions about her ability to regulate the very institutions she was financially tied to.

Khera emphasized the importance of SEBI’s role in overseeing the markets where India’s middle class invests, making the integrity of its Chairperson paramount. The Congress leader pointed out that the SEBI Chairperson is appointed by the Appointment Committee of the Cabinet, which includes Prime Minister Narendra Modi and Home Minister Amit Shah. He questioned whether these financial ties were disclosed to the Prime Minister and the Appointment Committee during Buch’s appointment.

“How can a regulator, tasked with ensuring fairness and transparency in the financial markets, continue to receive salaries and benefits from a bank that is subject to her regulatory authority?” Khera asked. He went on to accuse Buch of violating Section 54 of SEBI’s Employee Service Regulation 2001, which prohibits holding an “Office of Profit.” Khera argued that Buch’s continued receipt of payments from ICICI Bank and ICICI Prudential while serving as a Whole-Time Member and later as SEBI Chairperson constitutes not just a conflict of interest but illegality.

Khera presented detailed financial breakdowns of Buch’s earnings during her tenure at SEBI. In 2017-18, she allegedly received ₹2 crore from ICICI Bank and ₹7 lakh from ICICI Prudential, in addition to her SEBI salary of ₹35 lakh. By 2018-19, her salary from ICICI had doubled to ₹4 crore, while her income from ICICI Prudential also increased. This pattern continued until 2021-22, when her income from ICICI Bank reportedly stopped, but payments from ICICI Prudential persisted. Khera also noted that ICICI Bank handled Buch’s Tax Deducted at Source (TDS), further entangling her financial relationship with the bank.

Khera demanded Buch’s immediate resignation, arguing that her continued presence as SEBI Chairperson undermines the credibility of the institution. “This is not just a matter of impropriety—it is illegality. If there is any integrity left, she must step down,” he said.

The Congress leader also raised questions about the role of the government in protecting Buch, suggesting that someone within the government is shielding her from scrutiny. “Who is protecting the SEBI Chairperson? Is it the Prime Minister himself? We demand answers,” Khera asserted.

As the Congress party presses for answers, Khera indicated that more revelations are forthcoming. He also urged SEBI to disclose any other companies from which Buch or her close family members may have received benefits. “Millions of Indians have their money invested in the stock market. They deserve to know whether the person regulating the market has conflicts of interest,” Khera concluded.

This controversy adds another layer to the ongoing scrutiny of SEBI’s handling of market regulation, particularly in light of the recent Hindenburg Report, which raised concerns about the Adani Group’s offshore financial network. The Congress party’s allegations against Buch further question the impartiality of India’s financial regulatory framework, casting a shadow over the country’s financial governance.