On Friday, the Congress party claimed that SEBI chairperson Madhabi Puri Buch had received rent from an entity associated with Wockhardt Limited, which is now regulated by the securities market watchdog for insider trading and other violations. This, Congress says, violates the SEBI Code on Conflict of Interests for Board Members that was issued in 2008.
Pawan Khera, the head of the Congress media and publicity department, accused Buch of receiving ₹ $2,000 crore. The SEBI bench said that Ahuja received $16 crore from Carol Info Services, an affiliate of Wockhardt Ltd, during her term in SEBI as a whole-time member and later as chairperson between 2018 and 2024. Congress pointed out that continuing this financial relationship while entrusted with Wockhardt’s investigation is a clear case of a conflict of interest.
The Prime Minister headed the Appointments Committee of the Cabinet; therefore, Khera questioned the factors that led to Buch’s appointment on March 2, 2022. He questioned the official’s suitability to be appointed as a certain amount to continue should she agree to engage in previous financial relations should they favor the government.
Another leader of the Congress party to vent his displeasure on the perceived decline in the standards of transparency and integrity in the capital markets regulator was Jairam Ramesh, who also took a swipe at Prime Minister Narendra Modi, who he said must take responsibility for the current status of affairs in India’s capital markets regulator which he described as lacking in transparency and integrity. He gave examples of increasing numbers of Indian investors, called for better governance, and wondered why the Prime Minister had not done anything.
In this regard, the Parliament’s Public Accounts Committee (PAC) has resolved to launch an inquiry into the regulatory bodies that have been established under Acts of Parliament.
PAC Chairman K. C. Venugopal earlier stated that the Committee would decide if Buch needs to be summoned for questioning on the allegations. The Congress party has also demanded an investigation into the payments made to Buch by the ICICI Bank, which hired her before she joined SEBI.
