SEBI Chief Accused by Congress of Investing in Chinese Funds

The Congress attack comes a day after Buch said that she had made all necessary disclosures and complied with recusal guidelines in dealing with companies such as Mahindra Group that hired her husband

Outlook Business Desk

Updated on: 14 September 2024 5:51 pm

SEBI chief Madhabi Puri Buch Photo: SOPA Images

In a fresh round of allegation, the Congress has claimed that Securities and Exchange Board of India (Sebi) chairperson Madhabi Puri Buch invested in Chinese funds. Additionally, the party claims that Buch conducted transactions in listed securities totaling Rs 36.9 crore while in her official role.

Congress spokesperson Pawan Khera said at a press conference that these transactions took place between 2017 and 2023. He further asked, “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?”

This is in violation of Section 6 of the SEBI's Code on Conflict of Interest for the Members of Board (2008), he said. He also gave a year-wise break up of the total trading in securities which in total amounted to over Rs 36.9 crore. In addition to that, Khera said, "We have information that between 2017-2021, Madhabi Buch held foreign assets."

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• Is the PM aware that the SEBI Chairperson has been trading in listed securities while in possession of Unpublished Price Sensitive Information?

• Is the PM aware that Ms. Madhabi Puri Buch has made high value investments outside India? If yes, what is the date of… pic.twitter.com/gB8XWMhpFa
— Congress (@INCIndia) September 14, 2024

Taking to X, Rajya Sabha MP Priyanka Chaturvedi questioned the SEBI chief’s “investments in China markets".

Did @SEBI_India Chair Madhabi Buch really think all these investments in China markets,ESOPs&multiple salaries , Advisory fees, stock trading are not in conflict with her role?
Of course she did, but she knew both best friends - Modani jis will protect her, quid pro quo deal here… pic.twitter.com/uXCEtstRcA
— Priyanka Chaturvedi🇮🇳 (@priyankac19) September 14, 2024

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 the opposition Congress over receiving payments from her previous employer the ICICI Bank while being a whole time member of the SEBI.

The statement said Buch never dealt with any file involving Agora Advisory and Agora Partners -- the advisories where she held 99 per cent and continued to earn revenue even after she joined the market regulator body Sebi in 2017.

The Congress' allegations come weeks after Hindenburg Research launched a fresh broadside against Buch, alleging that she and her husband had stakes in obscure offshore funds used in the Adani money siphoning scandal.

(With inputs from PTI)