Madhabi Puri Buch invested in Chinese funds in addition to trading listed securities for Rs 36.9 crores during her tenure at SEBI. With this latest accusation of impropriety, the Congress Party has continued to fire shots at the head of the Securities and Exchange Board of India (SEBI).
Congress spokesperson Pawan Khera stated during a press conference on September 14 that these transactions occurred between 2017 and 2023, during which time Buch served as both the Indian Securities Market regulator's Chairperson and Wholetime Member.
According to Khera, 'these transactions are in violation of SEBI Code on Conflict of Interest for Members of Board (2008).'
Investment in chinese funds
Additionally, Madhabi Buch has been accused by the Congress of possessing foreign assets, including investments in Chinese funds, between 2017 and 2023.
"We would like to know which government agency Buch notified about these assets, and when. We would like to know when Buch first disclosed these foreign assets, as well as which government agency she notified at the time," Khera stated.
Global X MSCI China Consumer (CHIQ) and Invesco China Technology ETF (CQQQ) are two of the four foreign funds that Khera claims Buch has invested in.
Khera's comments are made one day after Dhaval Buch, the chief of SEBI, and she released a thorough statement responding to the numerous accusations made against them.
Buch owned 99 per cent of agora advisery
These accusations cover Dhaval Buch's post-retirement consulting work while Madhabi was at SEBI, as well as Buch's purported 99 per cent ownership of their firm Agora Advisory, which accepts payments from listed companies like Mahindra Group, Pidilite, and Dr. Reddy's Labs.
In addition, the allegations raised doubts about her receiving payments from ICICI Bank years after leaving the bank's employment and claimed that she and her spouse received rental income from a business connected to Wockhardt.
Dhawal and madhabi puri denied all allegation
Buch and her husband had denied all claims in a joint statement, labelling them as "false, incorrect, malicious, and motivated." She had also charged that the Congress Party was trying "just to keep the pot boiling" by making false accusations one after another.
Conflict of Interest code violated
Furthermore, the Congress has ruled that the payments that these companies have made to Buch or to entities associated with her are in violation of SEBI's Code on Conflict of Interest for Members of Board (2008).
The Congress has also deemed insufficient the explanations that Buch has provided, as well as the statements that companies like ICICI Bank, Mahindra Group, Pidilite, etc. have made in response to the earlier allegations made by the Congress.
