Congress intensifies push for probe into charges against Sebi chief

NEW DELHI: Pointing to reports that Sebi chairperson Madhabi Puri Buch had two employments during her second stint at ICICI Bank, Congress on Thursday said continuing allegations against her raise serious questions about her ability to function objectively, and that an impartial inquiry should be ordered into the charges levelled by foreign research firm Hindenburg as well as other accusations.
At a press conference, AICC Professionals' Congress chief Praveen Chakravarty said Buch's two jobs during her tenure at ICICI Bank tenure also involved Greater Pacific Capital, which had the son of National Security Adviser as a leadership member. He said such linkages compound the suspicions about her ability to function as an independent regulator in view of past allegations.
Chakravarty said 500 Sebi employees have openly termed the working environment in the market regulator as "toxic and fearful", but Sebi reacted by running down the employees as motivated by outsiders. He said Sebi is demeaning its own officers, and challenged it to sack the employees if they could be motivated by outside entities.
Recalling the allegations that Buch was receiving "salary" and "income" from ICICI Bank as Sebi member and chair, the Congress functionary said it was intriguing that the lender chose to speak on her behalf while the latter stayed away from commenting. He said it was starkly different from the past when ICICI Bank had responded to allegations against its CEO Chanda Kochar by ordering an independent inquiry, which later found her culpable.
Chakravarty differentiated between "salary", that Congress had used in its allegations, and "income", and said Puri's earnings from ESOPs were from ICICI whose stocks are regulated by Sebi, which demonstrates a "clear conflict of interest".
As a former finance professional, Chakravarty said he has received several calls from foreign investors who raised questins about the integrity of the market regulator. He said information and documents are floating around about the Sebi and a dedicated website is seeking anonymous info regarding the regulator.