Winning Bizness Desk
Mumbai. The Congress party has launched fresh allegations against Securities and Exchange Board of India (SEBI) Chairperson Madhabi Puri Buch, accusing her of violating SEBI’s conflict of interest code by investing in listed securities and foreign funds. Party spokesperson Pawan Khera stated in a press conference that Buch had traded in listed securities worth ₹36.9 crore between 2017 and 2023, during her tenure as a full-time member and later as SEBI Chairperson. According to Congress, this violates Section 6 of SEBI’s Code (2008) on conflicts of interest for board members. Khera further alleged that Buch held foreign assets between 2017 and 2021, which included investments in U.S.-based funds such as Vanguard Total Stock Market ETF (VTI), ARK Innovation ETF (ARKK), Global X MSCI China Consumer (CHIQ), and Invesco China Technology ETF (CQQQ).
Concerns Over SEBI Chairperson's Investments in Chinese Funds
The Congress expressed concern over Buch’s investments in China-focused funds. In its press release, the party raised questions about when Buch declared these foreign assets and to which government agency. They also questioned her involvement with Agora Partners PTE (Singapore), citing a signature on the company’s bank account as evidence.
Buch Issues Clarification on Agora Advisory Allegations
A day prior to these allegations, Madhabi Buch and her husband, Dhawal Buch, had issued a joint statement addressing claims related to Agora Advisory. They clarified that since Madhabi Buch joined SEBI, she had not handled any files related to the consultancy firm or any business group involved in the recent allegations. Regarding accusations about rental income, they termed the claims "false, malicious, and motivated."
Luxury Apartment Lease to Pharma Company Raises Questions
On September 7, Congress spokesperson Pawan Khera had alleged that the Buchs rented a luxury apartment in Mumbai to pharmaceutical company Wockhardt, receiving more than ₹2 crore in rent between 2018 and 2024. During this period, Wockhardt was reportedly under SEBI investigation for insider trading, raising suspicions of a "quid pro quo."
SEBI Chairperson Responds to Rental Income Allegations
In response, Madhabi Buch issued a detailed statement, clarifying that the apartment lease followed market norms, and the company that leased the property, Carol Info Services Limited, was later revealed to be associated with Wockhardt. She emphasized that the rental income was fully disclosed, taxes were paid, and the arrangement was in line with market rates. She also confirmed that she had not dealt with any files related to Wockhardt during her tenure.
Tampered Income Tax Returns, Buchs Retorts
The Buch couple also claimed that their income tax returns were illegally obtained and tampered with to misrepresent their financial activities. They called this a violation of privacy and tax regulations, accusing Congress of making continuous allegations to prolong the controversy. Notably, on September 10, Congress further alleged that Dhawal Buch, Madhabi Buch’s husband, had received ₹4.78 crore from automobile company Mahindra & Mahindra between 2019 and 2021.
