Sebi has ‘adequate internal mechanisms’ for addressing conflict of interest issues: Finance Ministry on allegations against Madhabi Puri Buch
New Delhi, February 10, 2025
On the issue of whether the government has responded to any of the complaints filed by Sebi employees against Buch, Minister of State for Finance Pankaj Chaudhary said there were "appropriate internal mechanisms including discussion with the representatives of all grade of officers and employee associations”.
The Finance Ministry on Monday said the Securities and Exchange Board of India (Sebi) has “adequate internal mechanisms for addressing issues relating to conflict of interest” on the allegations against Sebi Chairperson Madhabi Puri Buch of having investments in an offshore fund used by Adani Group and her continuing position in ICICI Bank. For the complaint by Sebi employees against Buch, the Ministry said employee-related matters are addressed through “appropriate internal mechanisms”.
In a written response to a question in Lok Sabha, Minister of State for Finance Pankaj Chaudhary said the Sebi Board has adopted a “Code on Conflict of interests for its board members, including the Chairperson, to ensure that the Board conducts itself in a manner that does not compromise its ability to accomplish its mandate or undermine the public confidence in the ability of member(s) to discharge his responsibilities”.
“Securities and Exchange Board of India (Sebi) has adequate internal mechanisms for addressing issues relating to conflict of interest, which include a disclosure framework and provisions for recusal,” he said.
The question pertained to whether the government had taken cognisance in the matter concerning the resignation of Sebi chief under allegations of investments in an offshore fund used by Adani Group and her continuing position in ICICI Bank.
On the issue of whether the government has responded to any of the complaints filed by Sebi employees against Buch, the Minister said that Sebi addresses employee-related matters through “appropriate internal mechanisms including discussion with the representatives of all grade of officers and employee associations”.
In August 2024, nearly 500 Grade A Sebi officials had complained to the government about a “toxic work culture”. The employees had also claimed that shouting, scolding and public humiliation were a norm at meetings. The regulator had then issued a press release on September 4, 2024 saying that its employees were “misguided by external elements” on issues related to house rent allowance (HRA). The release was then withdrawn by Sebi on September 16.
The letter by employees had come out after in August last year, the now-disbanded US-based short seller Hindenburg Research had levelled allegations against the Sebi chief Madhabi Puri Buch and her husband, Dhaval Buch, alleging that they had stakes in offshore funds used in the alleged Adani money siphoning scandal. The Buchs had denied these charges and termed them as ‘malicious, mischievous and manipulative’.
[The Indian Express]
