NEW DELHI: SEBI Chairperson Madhabi P. Buch is at the centre of controversy following revelations of potential conflicts of interest related to her financial engagements with SEBI-regulated entities, raising questions over her impartiality as India’s top financial regulator. Documents highlight significant income from external sources and a pattern of earnings through rental and consultancy arrangements that coincide with her tenure at SEBI.
The most significant disclosure involves Buch’s dual income from ICICI Bank and SEBI. From 2017 to 2024, Buch reportedly received Rs. 16.8 crore in compensation from ICICI Bank and ICICI Prudential, including salary, Employee Stock Options (ESOPs), and tax deductions on ESOPs. This amount is 5.09 times her SEBI earnings for the same period, which totalled Rs. 3.3 crore. SEBI had been handling regulatory complaints against ICICI Bank during this time, raising questions of potential influence and regulatory leniency.
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Adding to the concerns, Buch received Rs. 2.16 crore in rental income from leasing a property to Carol Info Services, a Wockhardt affiliate, between 2018 and 2024. Wockhardt has been under SEBI’s investigation on insider trading allegations, which has heightened scrutiny over her association with the company. Critics argue that renting her property to a company under SEBI’s investigative eye indicates a serious conflict of interest, calling into question SEBI’s commitment to impartial oversight.
Further, the SEBI Chairperson’s role in Agora Advisory Services, a consultancy firm she claims to have made inactive, has also come under fire. Despite her assertion, reports indicate that Agora Advisory received Rs. 2.95 crore from six SEBI-regulated entities between 2016 and 2024. The bulk of this, Rs. 2.59 crore, came from Mahindra & Mahindra. Given her influential position within SEBI, this consulting arrangement with regulated entities raises ethical questions and implies a potential breach of SEBI’s conflict-of-interest policies.
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The All India Congress Committee (AICC) has voiced strong criticism, with spokesperson Shri Pawan Khera questioning the rationale behind shielding Buch despite such allegations. “Why would anyone protect someone with so many questions about her professional life?” Khera asked, alluding to possible political pressures at play.
These revelations have intensified calls for reform within SEBI, with industry observers urging stricter oversight of SEBI’s conflict-of-interest policies to restore public trust. The case has raised concerns about the efficacy of regulatory bodies, emphasizing the need for transparency to safeguard the integrity of India’s financial system.