SEBI chief Madhabi Buch cleared in govt-led probe, to complete tenure till February: Report
Oct 22, 2024
SEBI chief Madhabi Puri Buch will complete her tenure till February after which the market watchdog will likely take its next decisions for appointment.
A government-led probe into allegations levelled against Madhabi Puri Buch, chairperson of capital markets regulator Securities and Exchange Board of India (SEBI) found nothing incriminating, according to a report by India Today. The investigation cleared Buch of the current allegations and concluded that she would complete her tenure, which ends in February 2025.
The probe was conducted after serious allegations of conflict of interest and financial misconduct were levelled against the SEBI chief by US short-seller Hindenburg Research and the Congress party. According to the report, a few agencies were asked to investigate the allegations, and the Finance Ministry also began its investigation. The government's probe involved speaking to SEBI employees on grievances over toxic work culture and unpaid salaries.
The report added that the issue was resolved when SEBI's top management was asked to be more sensitive towards staff. The probe found that the dissatisfaction may stem from Buch's sweeping reforms within SEBI, as her efforts to clean up the system were met with resistance. Considering all factors, the government decided that Buch will complete her current tenure, which ends on February 28, 2025.
Allegations against SEBI Chief
In August, US short-seller Hindenburg Research alleged that the market regulator was unwilling to act on its January 2023 Adani report because Sebi chairperson Madhabi Puri Buch and her husband Dhaval Buch had investments in offshore funds with links to the Adani group.
The SEBI chief and her husband denied the allegations, terming them ‘baseless’ and an attempted ‘character assassination’. “We suspect SEBI’s unwillingness to take meaningful action against suspect offshore shareholders in the Adani Group may stem from Chairperson Madhabi Buch’s complicity in using the exact same funds used by Vinod Adani, brother of Gautam Adani,” wrote Hindenburg in a blog post.
Subsequently, the Opposition Congress accused SEBI chairperson Madhabi Puri Buch of “outright corruption," claiming that she received rental income from an entity affiliated with Wockhdart Ltd., which the market watchdog investigated for various cases, including insider trading.
Congress' media and publicity department head Pawan Khera said that between 2018 and 2024, Buch -- as a whole-time member and later chairperson of capital market regulator SEBI-- had been receiving rental income amounting to ₹2.16 crore from "Carol Info Services Limited", a company affiliated to Wockhardt Limited.
Additionally, In a letter to the finance ministry, SEBI employees complained that "immense work pressure" at the market regulator resulted in a "stressful and toxic work environment." According to the letter dated August 6, accessed by some media houses, SEBI officials said, “Shouting, scolding and public humiliation have become a norm in meetings.”
SEBI refuted claims of toxic and unprofessional work culture at its offices, citing high employee standards and condemning few ‘external elements’ behind employee protests. The market watchdog said in its statement that complaints of ‘public humiliation’ at its offices were highly “misplaced” and also undermined the institution's and its leadership's credibility.
[Livemint]
