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The political landscape in India has been shaken by a series of allegations levied against the Securities and Exchange Board of India (SEBI) chairperson, Madhabi Puri Buch. Congress leader Jairam Ramesh, in a scathing attack, has accused Prime Minister Narendra Modi of shielding Buch amidst revelations of potential conflicts of interest. Ramesh's statement, delivered on Twitter, comes in the wake of the controversial Hindenburg report, which exposed alleged financial irregularities within the Indian conglomerate, Adani Group. The report sparked a public outcry, demanding accountability from regulatory bodies like SEBI.
Ramesh, in his pointed questioning of PM Modi, alleges that the Sebi chairperson held a position of profit and received a salary from ICICI during her tenure as the head of the market regulator. He further alleges that Buch continued to receive ESOP benefits from ICICI even though these benefits had long expired. This revelation has raised serious concerns regarding Buch's impartiality and potential conflicts of interest in her oversight of ICICI and its affiliates. Ramesh also questioned the Prime Minister's awareness of this situation, specifically asking whether the Prime Minister was aware of Buch's financial ties with ICICI and whether he had authorized Buch's appointment to SEBI despite these ties.
The Congress leader's accusations have sparked a heated debate surrounding the role of regulatory bodies in India, particularly SEBI's responsibilities in maintaining market integrity. The allegations also raise concerns about the independence and transparency of the Appointments Committee of the Cabinet (ACC), which is responsible for appointing key government officials, including those at SEBI. Ramesh's pointed questions challenge the ACC's independence, suggesting that it may be subject to political influence. This issue has become a major point of contention, with the Congress demanding a comprehensive investigation into the allegations against Buch and a clear explanation from the Prime Minister about his role in the matter. The outcome of this controversy could have significant implications for the Indian stock market and the future of regulatory oversight in India.
Source: ‘Who is protecting SEBI Chief’?: Congress slams PM Modi’s silence