‘Conflict Of Interest’: Congress In Fresh Salvo Against SEBI Chief Madhabi Puri Buch

The Congress party has accused SEBI chief Madhabi Puri Buch of trading in listed securities and investing in Chinese funds.

Kheda listed five Chinese funds in which Buch allegedly invested (File Image: PTI)

Source : PTI

In a fresh attack, the Congress party has accused the Securities and Exchange Board of India (SEBI) chief Madhabi Puri Buch of trading in listed securities and investing in funds focused on Chinese companies. In a media address, senior Congress leader Pawan Khera claimed that between 2017-2021, Buch held foreign assets and had made investments in four funds in the US between 2001 to 2004.

“First, between 2017-2023, Madhabi P Buch, as a whole-time member and later as the SEBI chairperson, traded in listed securities worth Rs 36.9 crores,” Khera said, adding that such transactions violate section 6 of the market regulator's Code on Conflict of Interest for Members of Board (2008).

LIVE: Congress party briefing by Shri @Pawankhera at AICC HQ. https://t.co/2e3UJG43yj

— Congress (@INCIndia) September 14, 2024

Kheda further listed five Chinese funds in which Buch allegedly invested and said, “It is deeply concerning to learn that Madhabi P Buch, the SEBI Chairperson, has been investing in Chinese funds. When the Prime Minister of India can publicly give China a clean chit, it’s hardly surprising that a key regulatory figure is engaging in investments linked to China."

The Congress leader also attacked Prime Minister Narendra Modi in this context and asked, “Is the PM aware that Ms Madhabi P Buch has made high value investments outside India? If yes, what is the date of this investment and date of disclosure? Is the PM aware that the Sebi chairperson has been investing in Chinese firms at a time when India is facing geopolitical tensions with China?”

Meanwhile, Buch had earlier said she had made all necessary disclosures and complied with recusal guidelines in dealing with companies such as Mahindra Group that hired her husband, as she rejected allegations of impropriety as false, malicious and motivated. 

Buch and her husband Dhaval Buch in a joint statement -- the second since US-based short seller Hindenburg Research charged her of not being motivated enough to act on allegations against the Adani group due to conflict of interest -- also addressed issues raised by opposition Congress over receiving payments from her previous employer ICICI Bank while being a whole-time member of Sebi. 

While Hindenburg had alleged that the Buchs had previous investments in a fund that was part of network of funds used by two Adani associates to round-trip money and inflate group stock prices, the Congress alleged conflict of interest in dealings with ICICI, where she worked until 2011, as well as with Mahindra Group and four other companies due to consulting fees given by them to her husband Dhaval Buch.