The Indian National Congress (INC) has called for an independent investigation into the allegations surrounding Securities and Exchange Board of India (SEBI) Chairperson Madhabi Puri Buch. The opposition party, citing concerns from foreign investors and doubts about the integrity of the Indian stock market, believes an investigation is crucial for the nation’s economic well-being.
The Congress argues that only an impartial and objective inquiry, with Buch stepping aside during the investigation, can restore trust and confidence in India’s stock markets. They claim that a series of allegations against Buch, including conflict of interest and accusations of a toxic work environment at SEBI, have raised serious questions about her leadership.
Praveen Chakravarty, Chairman of Professionals’ Congress and Data Analytics, highlighted that a foreign research firm issued a report in August alleging offshore funds held by Buch and her family, for which they claimed to have evidence. He questioned why the Modi government responded to these allegations, while Buch herself remained silent. Additionally, Chakravarty pointed out that 500 SEBI officers wrote a letter to the Indian government, alleging a “toxic, abusive and fearful” work environment under Buch’s leadership.
The Congress further highlighted Buch’s previous employment at ICICI Bank, raising questions about potential conflicts of interest. They cited a news report indicating that Buch had two concurrent employments while at ICICI, including a private equity fund. The party argues that these revelations raise further concerns about Buch’s conduct and the need for an independent inquiry.
Chakravarty stated that he has received calls from foreign investors expressing concerns about the integrity of India’s securities market. He emphasized the importance of a strong and robust stock market for attracting foreign capital and the potential damage caused by these allegations.
The Congress’s demand for an investigation is fueled by concerns about the potential impact of these allegations on investor confidence and the broader economy. They are urging the government to address the matter swiftly and transparently to ensure the stability and integrity of India’s financial system.
This latest call for an inquiry follows previous allegations by the Congress against Buch, including conflict of interest stemming from her continued income from ICICI Bank after joining SEBI. While ICICI Bank has denied paying Buch a salary or granting her employee stock options after her retirement, the Congress questioned the nature of the payments, arguing that the non-uniform frequency and amount raise further questions.
The current controversy began after a report by US-based short seller Hindenburg Research, which alleged that Buch and her husband held stakes in offshore funds used to funnel money into the Adani Group. Buch has denied the allegations, calling them baseless, and the Adani Group has also termed them as malicious and manipulative.
The Congress’s demands for an investigation have put pressure on the government to respond to the mounting allegations against Buch and address the concerns of foreign investors. The outcome of the investigation could have significant implications for the future of SEBI and the Indian financial sector.
