On Friday, the Congress party levied accusations against SEBI Chairperson Madhabi Puri Buch, claiming she has been receiving rental income from a company linked to Wockhardt Limited, which is currently being scrutinized by the regulatory body for allegations of insider trading and other misconducts. They argue this situation breaches the SEBI’s 2008 Conflict of Interest Code for Board Members.

Pawan Khera, the head of Congress’ publicity, charged that Buch had amassed a sum of ₹2.16 crore from Carol Info Services, a firm associated with Wockhardt, during her tenure as a member and later the head of SEBI, spanning from 2018 to 2024.

This ongoing financial connection with a company under SEBI’s purview was flagged by Congress as a substantial conflict of interest issue.

Highlighting the process of her appointment, the Congress pointed out, “On March 2, 2022, Buch was appointed as the SEBI chairperson by the Appointments Committee of the Cabinet, chaired by the prime minister himself.

Was her selection conditional on her ability to retain prior financial engagements, as long as she aligns with the prime minister and his close confidants?”

The party is demanding her dismissal and an independent investigation into these allegations to scrutinize her neutrality and the overall transparency of the regulatory body under her leadership.

Jairam Ramesh, the Congress’s general secretary in charge of communications, emphasized the need for Prime Minister Narendra Modi to address these concerns, especially given the large number of Indians invested in the market.

“With data from NSE showing 10 crore Indians having investments linked to their unique PANs, the onus is on the Prime Minister. The question of why there is inaction and what fears he might harbor needs answers,” Ramesh shared on X.

PAC to decide on calling Sebi chief Madhabi Buch

In the wake of these accusations, the Parliament’s Public Accounts Committee (PAC) has announced it will probe into regulatory entities established by Acts of Parliament, with Buch potentially being summoned for the examination of the allegations against her.

PAC Chairman K C Venugopal confirmed that the committee is still deliberating on how to proceed regarding the SEBI chairperson.

Furthermore, Congress has raised concerns about payments Buch received from ICICI Bank, where she previously worked, after joining SEBI as a full-time member, calling for a thorough investigation into these transactions.