NEW DELHI: As the Public Accounts Committee of Parliament takes a decision on summoning Sebi chairperson Madhabi Puri Buch as part of a review of the market regulator, Congress on Friday levelled fresh allegations of conflict of interest against her.
At a press conference, party spokesperson Pawan Khera alleged that between 2018 and 2024, when she was a member and subsequently chairman of Sebi, Buch received rental income of over Rs 2 crore from an entity that was being probed for multiple violations, including insider trading . He said rental income had accrued from Carol Info Services , a company affiliated to Wockhardt , which was facing charges in 2023. Wockhardt denied the allegations.
"It has come to our attention that there are certain allegations pertaining to payment of rent by Carol Info Services Limited and its connection with certain orders passed by Sebi in relation to the company. In this regard, we categorically deny these allegations and state that these allegations are completely baseless and misleading. The company has acted and continues to act in compliance with all applicable laws," it said in a stock exchange filing.
PAC set to decide on calling Buch for Sebi review
Earlier, Congress kept up its attack and said, "This is an outright case of corruption that invokes conflict of interest violating Sections 4, 7 and 8 of Sebi's 2008 Code on Conflict of Interests for members of the board."
"Was her appointment cleared on the condition that she could maintain her previous financial relationships, provided she acted in line with the wishes of the prime minister and his close associates?" Khera asked while seeking to drag the govt into the row.
He said that unlike some of her predecessors, Buch, the first woman to lead Sebi and the first chairperson from the private sector, had "merely transferred her investments to her spouse, which raises concerns about credibility".
M Damodaran, who became Sebi chairman, sold 50 shares of State Bank of India when he took his previous appointment as CMD of UTI in 2001. Similarly, after he took over as Sebi chief, C B Bhave recused himself from all matters involving the National Securities Depository Ltd, where he was formerly chairman, Khera said.
At a press conference, party spokesperson Pawan Khera alleged that between 2018 and 2024, when she was a member and subsequently chairman of Sebi, Buch received rental income of over Rs 2 crore from an entity that was being probed for multiple violations, including insider trading . He said rental income had accrued from Carol Info Services , a company affiliated to Wockhardt , which was facing charges in 2023. Wockhardt denied the allegations.
"It has come to our attention that there are certain allegations pertaining to payment of rent by Carol Info Services Limited and its connection with certain orders passed by Sebi in relation to the company. In this regard, we categorically deny these allegations and state that these allegations are completely baseless and misleading. The company has acted and continues to act in compliance with all applicable laws," it said in a stock exchange filing.
PAC set to decide on calling Buch for Sebi review
Earlier, Congress kept up its attack and said, "This is an outright case of corruption that invokes conflict of interest violating Sections 4, 7 and 8 of Sebi's 2008 Code on Conflict of Interests for members of the board."
"Was her appointment cleared on the condition that she could maintain her previous financial relationships, provided she acted in line with the wishes of the prime minister and his close associates?" Khera asked while seeking to drag the govt into the row.
He said that unlike some of her predecessors, Buch, the first woman to lead Sebi and the first chairperson from the private sector, had "merely transferred her investments to her spouse, which raises concerns about credibility".
M Damodaran, who became Sebi chairman, sold 50 shares of State Bank of India when he took his previous appointment as CMD of UTI in 2001. Similarly, after he took over as Sebi chief, C B Bhave recused himself from all matters involving the National Securities Depository Ltd, where he was formerly chairman, Khera said.
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