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The recent controversy surrounding SEBI chairperson Madhabi Puri Buch's potential conflict of interest has taken a new turn with ICICI Bank issuing a statement denying any financial ties with her after her retirement from the bank in 2013. This denial comes on the heels of accusations made by the Congress party, who alleged that Buch held an office of profit at ICICI and received substantial benefits from the bank and its subsidiaries. The Congress further claimed that Buch received a total of ₹16.8 crore from ICICI Bank, ICICI Prudential, and ESOPs between 2017 and 2024, in addition to her salary from SEBI.
In its statement, ICICI Bank clarified that it did not pay Buch any salary or ESOPs after her retirement, only her retirement benefits. The bank explained that while Buch did receive compensation, including salary, retiral benefits, bonus, and ESOPs during her employment with the ICICI Group, these payments were in line with their applicable policies. The bank further stated that as per the rules existing at the time of Buch's ESOP grant, employees, including retired employees, had the option to exercise their ESOPs for up to ten years from the date of vesting. However, the bank clarified that the income earned from the exercise of ESOPs is treated as perquisite income under income tax rules and is reflected in the Form 16 of employees, including retired employees.
The accusations made by the Congress against Buch stem from the allegations of conflict of interest brought forth by US-based short seller Hindenburg Research. Hindenburg alleged that Buch had a conflict of interest with Blackstone, a major investor in REITs, as her husband, Dhaval Buch, was appointed as an advisor to the global asset management company. However, SEBI has vehemently refuted these allegations and stated that they have consistently highlighted the role of REITs, SM REITs, InvITs, Municipal Bonds, etc., in advancing the Indian securities market. This back-and-forth between various parties has brought the spotlight onto the ethical practices and potential conflicts of interest within regulatory bodies, raising questions about the independence and transparency of these institutions.
Source: ICICI denies paying salary, ESOPs to SEBI chief Madhabi Buch after retirement