On Friday, the Congress party alleged that SEBI Chairperson received rental income from Carol Info Services, an entity associated with Wockhardt Limited.
Wockhardt Limited is currently under investigation by SEBI for insider trading and other regulatory breaches. The Congress asserts that this situation breaches SEBI’s 2008 Code on Conflict of Interests for Board Members.
Pawan Khera, head of the Congress media and publicity department, claimed that between 2018 and 2024, Buch received ₹2.16 crore from Carol Info Services while serving as SEBI’s whole-time member and later as its chairperson. The Congress contends that maintaining this financial relationship while overseeing SEBI’s investigation into Wockhardt constitutes a significant conflict of interest.
The Congress has questioned whether Buch’s appointment on March 2, 2022, by the Appointments Committee of the Cabinet—led by the Prime Minister—was conditional on her retaining her previous financial ties, provided she aligned with the interests of the Prime Minister and his close associates. They are now calling for her immediate dismissal and an independent investigation into her conduct to address concerns about her impartiality and the transparency of SEBI under her leadership.
Congress General Secretary Jairam Ramesh has called upon Prime Minister Narendra Modi to address the issue, questioning the level of evidence required to demonstrate the erosion of transparency and integrity at the capital markets regulator. Ramesh emphasized that with 10 crore Indians now holding unique PANs and investing in the market, they deserve better oversight and questioned the Prime Minister’s reluctance to act.
PAC to decide on calling Sebi chief Madhabi Buch
In response to the controversy, the Parliament’s Public Accounts Committee (PAC), chaired by K. C. Venugopal, has decided to investigate the regulatory bodies established by Acts of Parliament. Venugopal indicated that the Committee will decide whether to summon Buch for questioning regarding the allegations against her. The Congress has also raised concerns about payments made to Buch by ICICI Bank, her former employer, and has called for an independent probe into these transactions.
