A day after demanding an independent inquiry into the allegations against the Securities and Exchange Board of India chairperson Madhabi Buch, the Congress on Friday levelled fresh "conflict of interest" allegations against Buch, calling it "corruption". The party claimed that Buch received rental income from a company that was affiliated with an entity that was under probe for various cases, including that of insider trading. The party also emphasised that this "exposé" was merely the tip of an iceberg, and there remains a long chain of revelations that the Congress will make soon.
The allegations were made by Congress' media and publicity department head Pawan Khera, who said that between 2018 and 2024, Buch had received a rental income amounting to Rs 2.16 crore from Carol Info Services Limited. He said that this company is part of another entity called Wockhardt Limited and that both of them have the same promoters.
"Wockhardt is a company on which SEBI is continuously giving orders and dealing with its cases. Madhabi Puri Buch is the chairperson of the same organisation (SEBI) which has complaints against Wockhardt before it. In 2023, there was a case of insider trading too, her organisation (SEBI) dealt with the insider trading cases of Wockhardt too. This is conflict of interest, I would call it corruption. This is not just conflict of interest, this is out and out corruption." he claimed at a press conference at the AICC headquarters in Delhi.
Asserting that this was an outright case of corruption, Khera said that it invoked conflict of interest, violating sections 4, 7 and 8 of SEBI's 2008 code on conflict of interests for members of its board.
The SEBI chairperson was appointed on March 2, 2022, by the Appointments Committee of the Cabinet, headed by the prime minister. "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?" the Congress leader asked.
He further pointed out that the "previous SEBI chairpersons went to great lengths to avoid even the appearance of a conflict of interest, both in their roles at SEBI and in their earlier positions."
Giving an example of how M Damodaran, former SEBI chief, sold his 50 SBI shares when he took over Unit Trust of India in 2001, Khera added, "Buch merely transferred her investments to her spouse, which raises concerns about credibility."
He also questioned why there was no effort to verify whether Buch would follow these established standards. "Or was this lack of scrutiny part of a mutually beneficial arrangement?" he asked.
The Congress leader further said that if the "head of the regulatory body is compromised, then that head becomes pliable. Perhaps that was the objective." He also challenged the SEBI chief to speak up and deny the charges against her.
How Much More Evidence Is Needed?: Jairam Ramesh Asks PM
Meanwhile, Congress general secretary and communications in-charge Jairam Ramesh, in a post on X, said that PM Modi needs to be really questioned on how much more evidence was needed to prove the collapse of transparency and integrity of the capital markets regulator.
"By the NSE's data, there are now 10 crore Indians with unique PANs who have some form of investment in this market. Don't they deserve better? Why does he not move? What is he afraid of?" Ramesh tweeted.
Congress Demands Independent Inquiry
The Congress on Thursday demanded that an independent inquiry be conducted into the matter, stressing that it was in the national interest to have a probe given the concern of the foreign investors and the doubts about the integrity of India's stock markets.
It had also alleged Buch of conflict of interest and asked PM Modi to speak on the matter as he was the head of the Appointments Committee of the Cabinet on Buch's appointment.
The opposition party also demanded that the Supreme Court take cognisance of the fresh revelations. It also sought that the SEBI chairperson be dismissed immediately.