7 points | Congress allegations against SEBI's Buch, from ICICI pay hikes to ESOPs

The Congress on Monday levelled fresh conflict of interest allegations against SEBI Chairperson Madhabi Buch and asked Prime Minister Narendra Modi to come clean — as the head of the Appointments Committee of the Cabinet (ACC) — on her appointment.

At a press conference, the Congress alleged that since the current SEBI chairperson took office in 2017, she has not only been drawing a salary from SEBI but has also been holding an office of profit at the ICICI Bank, continuing to receive income from them to this very day.

Addressing a press conference at the AICC headquarters here, Congress' media and publicity department head Pawan Khera said Buch was a whole time member (WTM) of SEBI from April 5, 2017 to October 4, 2021 and the chairperson from March 2, 2022 till date. There have been multiple conflicts of interest involving the SEBI chairperson, he said.

Some of the Congress's allegations are:

1. During 2017-21, even while a WTM of SEBI, Buch received a salary from ICICI Bank amounting to Rs 12.63 crore. This is said to be in violation of Section 54 of the SEBI (Employees' Service) Regulations, 2001.

2. During 2017-24, while a WTM and later the SEBI chairperson, Buch also received income from life insurance firm ICICI Prudential amounting to Rs 22.41 lakh. This is again said to be in violation of Section 54 of the SEBI (Employees' Service) Regulations, 2001.

3. Between 2021 and 2023, Buch received ESOP (employee stock options) from ICICI Bank amounting to Rs 2.84 crore. This is said to be in violation of Section X of the ICICI Employees Stock Option Scheme 2000.

4. Between 2021 and 2023, Buch was also in receipt of TDS (tax deduction at source) on the ESOP that was paid by ICICI Bank amounting to Rs 1.1 crore. The said TDS amount is chargeable under salary and again in violation of the SEBI Code of Conduct.

5. This can be viewed as a case of escapement of income-tax as the benefit of TDS on ESOP paid by ICICI Bank is a prerequisite and again is liable for tax. This tax escape is said to be Rs 50 lakh.

6. The total amount received by Buch from ICICI from her time of joining SEBI in 2017 up until today totals to Rs 16.8 crore, which is over five times the income she received from SEBI during the same period, which amounts to Rs 3.3 crore, according to the Congress.

7. In 2017-18, when Buch joined SEBI as a WTM, she received a 190 per cent pay jump from ICICI. In subsequent years, there was a 422 per cent, 110 per cent, and 416 per cent jump (2020-21), said Congress. 

Jairam Ramesh's charges

Congress general secretary in-charge communications Jairam Ramesh said serious questions have been raised over the conflict of interest of Buch in SEBI's Supreme Court-mandated investigations into violations of securities laws by the Adani Group.

"These questions seem to have been simply brushed aside by the Government of India. Now comes this fresh revelation of shocking illegality," Ramesh said in a post on X.

"The non-biological PM, who has been complicit in providing cover to the SEBI chairperson through his silence, must come clean and answer the following questions What is the fit and proper criteria for appointment of heads of regulatory bodies?" he said.

'Does Modi know?'

Has the ACC, headed by the PM, gone through these shocking facts about the SEBI Chairperson or is the ACC completely outsourced to the PMO, he asked.

Ramesh also questioned whether Modi is aware that Buch was holding an office of profit and receiving salary/income from ICICI during her time at SEBI. Who is protecting the SEBI chairperson and why, he further asked.

"The non-biological PM cannot continue this indefinite stonewalling. Capital markets, in which crores of Indians make their investment, demand full transparency and integrity on the part of their regulator," the senior Congress leader said.

The ACC, apart from Modi, consists of Home Minister Amit Shah, Transport Minister Nitin Gadkari, Finance Minister Nirmala Sitharaman, Commerce Minister Piyush Goyal, and Petroleum Minister Hardeep Singh Puri.