New Delhi: The cases where SEBI chairperson Madhabi Puri Buch recused herself due to potential conflict of interest is not “readily” available and collating them would “disproportionately divert” its resources, the securities market regulator said in an RTI response on Friday.

What Did Sebi Say In RTI Response?

In the response furnished to transparency activist Commodore Lokesh Batra (retd), the regulator also refused to provide copies of Buch’s declarations to the government and SEBI Board on the financial assets and equities held by her and her family members on the grounds of these being “personal information” and that their disclosure may “endanger” personal safety. (Also Read: Congress’ Fresh Salvo At Buch)

It also denied to disclose the dates on which the disclosures were made. The SEBI Central Public Information Officer (CPIO) used the grounds of “personal information” and “safety” to deny copy of those declarations.

“Since the information sought do not pertain to you and the same relates to personal information, the disclosure of which has no relationship to any public activity or interest and mat cause unwarranted invasion into the privacy of the individual and may also endanger the life or physical safety of the person(s). The same is, therefore exempt in terms of Section 8(1)(g) and 8(1)(j) of the RTI Act, 2005,” the RTI response said.

“Further the information on cases where Madhabi Puri Buch recused herself due to potential conflicts of interest during her tenure is not readily available and collating the same will lead to disproportionately diverting the resources of the public authority in terms of Section 7(9) of the RTI Act,” it said.

Section 8(1)(g) allows a public authority to withhold information the disclosure of which would endanger the life and physical safety of any person and section 8(1)(j) allows withholding information which relates to personal information the disclosure of which has no relationship to any public activity or interest.

A CPIO may still disclose information if public interest in disclosure outweighs the harm to the protected interests.

A press release from SEBI on August 11 had claimed that the chairperson has recused herself in matters involving potential conflict of interest.

“It is noted that relevant disclosures required in terms of holdings of securities and their transfers have been made by the Chairperson from time to time,” it had said.

The US-based short seller Hindenburg Research alleged that it suspects SEBI’s unwillingness to act against the Adani group may be because Buch had stakes in offshore funds linked to the conglomerate.

The short seller had alleged that Buch and her husband Dhaval had invested in one of the funds which was allegedly being used by Vinod Adani. It also flagged Dhaval’s association with private equity major Blackstone, a promoter of multiple real estate investment trusts (REITs) and Sebi’s continued pitch for the new investment avenue.

“The allegations made by Hindenburg Research, against the Adani Group, have been duly investigated by Sebi,” the capital markets regulator had said in the statement.

The Supreme Court had itself noted in an order in January that 24 out of 26 investigations against Adani had been completed, it said, adding that one more was completed in March and the last is nearing completion now.

New Delhi: The opposition Congress on Tuesday launched fresh tirade against Sebi Chairperson Madhabi Puri Buch over receiving regular income from private lender ICICI Bank and arm ICICI Prudential, while being the whole-time member and later Chairperson of the capital markets regulatory body.

Pawan Khera, Chairman, Media and Publicity Department, Congress, in a press conference said, “We asked three questions yesterday (which was directed towards ICICI bank, PN and Buch. Of the three, ICICI bank responded to our allegations, which has infact helped us in un-layering this expose further.” (Also Read: Trouble Mounts For Madhabi Puri Buch)

Khera further claimed that ICICI bank paid pensions to Buch which varied in various years and was not steady. He added that Buch availed ESOPs from ICICI even after superannuation from the Group. He questioned as to how retirement benefits or pensions be more than the annual average salary that Buch drew from ICICI.

Khera also raised questions on the TDS being paid by ICICI Bank on ESOPs to Buch. (Also read: Buch Responsible For ZEEL-Sony Deal Failure)

“Why did ICICI pay the TDS on ESOPs on behalf of Buch? Does the bank follow the same protocol for all its past and present employees? Why didi ICICI not offer this TDS amount as taxable income of Buch? Is this not a clear non-compliance of the Income Tax Act?,” questioned Khera.

Read Congress’ Latest Expose On Madhabi Puri Buch And ICICI Bank Via This Tweet Thread

 

Statement by Shri Pawan Khera, Chairman, Media & Publicity (Communication Deptt), AICC. pic.twitter.com/E3S96g3Zoy
— INC Sandesh (@INCSandesh) September 3, 2024

Response Of ICICI Bank On Congress’ Allegations 

ICICI Bank in a stock exchanges in a filing, hours after the Congress party labeled office-for-profit charge against Buch yesterday said that the bank or its group of companies have not paid any salary or granted any employee stock ownership plan (ESOPs) to SEBI Chairperson Madhabi Puri Buch after her retirement, other than her retiral benefits.

“During her employment with the ICICI Group, she received compensation in the form of salary, retiral benefits, bonus and ESOPs, in line with applicable policies,” the ICICI Bank exchange filing read.

Buch had opted for superannuation from the Group with effect from October 31, 2013. Under the bank’s ESOP rules, the ESOPs vest over the next few years from the date of allotment, the lender asserted in the filing. “As per rules existing at the time of her ESOP grant, employees including retired employees had the choice to exercise their ESOPs anytime up to a period of 10 years from the date of vesting.”

“As per Income Tax rules, the difference between the price of the stock on the day of exercise and the allotment price is treated as perquisite income and is reflected in Part B of the Form16 of employees, including retired employees. The Bank is required to deduct the perquisite tax on this income. In addition, Form -16 covers the payment made towards the retiral benefits of former employees,” the exchange filing added.

All the payments made to Buch post her retirement had accrued to her during her employment phase with the ICICI Group.

Those payments comprised ESOPs and retiral benefits, the lender’s exchange filing concludes.

With ANI Inputs

New Delhi: Fresh troubles seem to be brewing for Sebi Chairman Madhabi Puri Buch, with Congress spokesperson Pawan Khera levelling allegations that the chief of SEBI drew salary from ICICI Bank, and eased norms for it.

Congress leader Pawan Khera said, “The role of SEBI is to regulate the share market where we all invest our money. It has a very important role to play. Who appoints the chairperson of SEBI? This is the Appointments Committee of the Cabinet, Prime Minister and Union HM Amit Shah. There are two members in this committee for appointing the chairperson of SEBI…She (SEBI Chairperson Madhabi Puri Buch) between 2017 and 2014 was taking regular income of Rs 16 crore 80 lakhs from ICICI Bank. You are also a full-time SEBI member, then why were you taking a salary from ICICI?…”

Buch is already in the eye of the storm, following fresh rounds of allegations by Hindenburg. The Hindenburg report published last month, alleged that Madhabi Buch, and her husband had stakes in both obscure offshore funds used in the Adani money siphoning scandal, a claim outrightly rejected by Sebi, its Chief and the Adani group.

Following the release of the Hindenburg on August 10, Buchs and SEBI had released their response via a press release, their only response till date, rebutting all the claims made by the US-based short seller. Added to that, the silence from Sebi’s board of directors, Indian market regulator’s credibility has taken a nosedive. 

Leader of Opposition in the Lok Sabha, Rahul Gandhi has demanded a Joint Parliamentary Committee (JPC) probe into the charges against Madhabi Puri Buch flowing the series of allegations levelled against the Sebi chief by Hindenburg report. 

The ruling BJP has however dismissed the claims calling it a “sham” aimed at undermining the Indian economy.