Yesterday, the Congress party initially shared a video suggesting that an explosive press release was forthcoming—one with the potential to shake the very foundations of the earth or, at the very least, to alter the political landscape of India. A few hours later, Congress spokesperson Pawan Khera held a press conference targeting the Chairperson of the Securities and Exchange Board of India (SEBI), Madhabi Puri Buch. Mr. Khera alleged that after Ms. Buch assumed her position as a full-time member of SEBI, she continued to receive a salary from her previous employer, ICICI Bank.
Congress leader Pawan Khera said, ‘The role of SEBI is to regulate the share market where we all invest our money. It has a very important role to play. Who appoints the chairperson of SEBI? This is the Appointments Committee of the Cabinet, Prime Minister and Union HM Amit Shah. There are two members in this committee for appointing the chairperson of SEBI…She (SEBI Chairperson Madhabi Puri Buch) between 2017 and 2024 was taking regular income of Rs 16 crore 80 lakhs from ICICI Bank. You are also a full-time SEBI member, then why were you taking a salary from ICICI?…’
#WATCH | Congress leader Pawan Khera says "The role of SEBI is to regulate the share market where we all invest our money. It has a very important role to play. Who appoints the chairperson of SEBI? This is the Appointments Committee of the Cabinet, Prime Minister and Union HM… pic.twitter.com/aEYLPLe7gL
— ANI (@ANI) September 2, 2024
Congress party claimed, ‘Our questions to PM Modi:
1. Prime Minister, when you appoint heads of regulatory bodies, what are the appropriate criteria for them?
2. Did these shocking facts about SEBI Chairperson come to light before the ACC headed by the Prime Minister before/after her appointment?
3. Did the Prime Minister know that Madhabi Puri Buch was drawing salary from ICICI despite holding a position of profit during her tenure at SEBI?
4. Is the Prime Minister aware that as Chairperson/Full Time Member of SEBI, she was handling complaints against ICICI and also taking income from ICICI?
5. Why did SEBI Chairperson/Full-time Member continue to receive ESOP profits even after leaving ICICI, was the Prime Minister aware of this?
6. The Prime Minister should tell who is protecting the SEBI Chairperson despite so many revelations about her and why?’
प्रधानमंत्री मोदी से हमारे सवाल:
— Congress (@INCIndia) September 2, 2024
1. प्रधानमंत्री जी, आप जब रेगुलेटरी बॉडी के प्रमुखों की नियुक्ति करते हैं, तो उनके लिए क्या उचित मानदंड रखते हैं?
2. क्या प्रधानमंत्री की अध्यक्षता वाली ACC के सामने SEBI चेयरपर्सन की नियुक्ति से पहले/बाद में उनके बारे में ये चौंकाने वाले तथ्य… pic.twitter.com/1fOdbtWWAI
Congress spokesperson Supriya Shrinate wrote, ‘ Golmaal hai bhai, sab Golmaal hai..’
गोलमाल है भाई सब गोलमाल है! 🤔 pic.twitter.com/ejLyuWRzwP
— Supriya Shrinate (@SupriyaShrinate) September 2, 2024
Shiv Sena (UBT) leader Priyanka Chaturvedi asserted, ‘ As per the documents shared by Pawan khera in his presser, this is tantamount to a straight up fraud and conflict of interest. This demands for an investigation as well as her resignation. Madhabi Buch appointment to a sarkari position as full time member first and then as Chairperson of regulatory body of SEBI didn’t stop her from drawing salary and later ESoPs from ICICI Bank and ICICI prudential besides the salary from SEBI too.’
pic.twitter.com/ShI2CLXSTG As per the documents shared by @Pawankhera in his presser, this is tantamount to a straight up fraud and conflict of interest. This demands for an investigation as well as her resignation.
— Priyanka Chaturvedi🇮🇳 (@priyankac19) September 2, 2024
Madhabi Buch appointment to a sarkari position as full time member…
Rohini Singh stated, ‘SEBI chief committed a scam. Now what will be the government/BJP’s defense on this?
1-There is an attack on the country, Bharat Mata ki Jai.
2-Hindus are in danger, Jai Shri Ram.
3- This is a conspiracy by Soros and his team.
4- This is a master stroke done in the interest of the country so that India can become developed in 2047’
SEBI चीफ ने घोटाला किया। अब सरकार/बीजेपी का इसपर डिफेंस क्या होगा?
— Rohini Singh (@rohini_sgh) September 2, 2024
1-देश पर है हमला,भारत माता की जय।
2-हिंदू ख़तरे में है,जय श्री राम।
3-सोरोस और उनकी टीम की साज़िश है ।
4-देशहित में किया गया मास्टर स्ट्रोक घोटाला है ताकि 2047 में विकसित भारत हो सके
Left-leaning journalist Ravish Kumar posted a video on his YouTube channel discussing the claims made by the Congress party. Without conducting proper due diligence or verifying the facts, Kumar uncritically repeated every word Pawan Khera said as though it were the gospel truth.
In addition to these claims, many others have made similar allegations, including Sandeep Chaudhary commentary, Sama Ram Mohan Reddy, Sayantani, and Hakimuddin Saify.
Also Read: Mohammad Zubair Misleads on Vadodara Flooding: Falsely Links Geotextile Removal to Poor Road Quality
Fact Check
For those unfamiliar with the situation, the controversy revolves around the Conduct Rules for Central government employees, which prohibit them from receiving a salary or working for any private organization as a full-time member or consultant. The main issue arose after a press conference by the Congress party members. However, the press conference had little to no impact. Furthermore, the credibility of the Congress leader’s claims was severely undermined when ICICI Bank released a press statement clearly stating that Ms. Madhabi Puri Buch did not receive any salary after being appointed as a full-time member of SEBI in 2017. Instead, she received retiral benefits. SEBI’s chairperson had opted for superannuation effective from October 31, 2013. During her tenure with the ICICI Group, she was compensated through salary, retiral benefits, bonuses, and ESOPs, per the applicable policies.
In a press release ICICI bank stated, “It has come to our attention that there are certain reports in media alleging payment of salary by ICICI Group to Ms. Madhabi Puri Buch, Chairperson, SEBI. In this connection, we would like to clarify as follows:
ICICI Bank or its group companies have not paid any salary or granted any ESOPs to Ms. Madhabi Puri Buch after her retirement, other than her retiral benefits. It may be noted that she had opted for superannuation with effect from October 31, 2013.
During her employment with the ICICI Group, she received compensation in the form of salary, retiral benefits, bonus and ESOPs, in line with applicable policies.
Under the Bank’s ESOP rules, the ESOPs vest over the next few years from the date of allotment. As per rules existing at the time of her ESOP grant, employees including retired employees had the choice to exercise their ESOPs anytime up to a period of 10 years from the date of vesting.
As per Income Tax rules, the difference between the price of the stock on the day of exercise and the allotment price is treated as perquisite income and is reflected in Part B of the Form-16 of employees, including retired employees. The Bank is required to deduct the perquisite tax on this income. In addition, Form-16 covers the payment made towards the retiral benefits of former employees.“
All the payments made to Ms. Buch post her retirement had accrued to her during her employment phase with the ICICI Group. These payments comprise ESOPs and retiral benefits.“
ICICI issues statement – It has come to our attention that there are certain reports in media alleging payment of salary by ICICI Group to Madhabi Puri Buch, Chairperson, SEBI. In this connection, we would like to clarify as follows: “ICICI Bank or its group companies have not… https://t.co/Hrw8hRuSuo pic.twitter.com/YJTghSH59H
— ANI (@ANI) September 2, 2024
Conclusion: Congress leader Pawan Khera claimed that Ms. Madhabi Puri Buch continued to receive salary from ICICI Bank from 2017 to 2024 after becoming a full-time SEBI member and later the Chairperson. However, the truth is that she was receiving payments from her retirement plan, which she opted into in October 2013.
Also Read: Analysis: Why the Hindenburg Accusations on Adani-SEBI Lack Substance?
