Recently, The Congress party alleged the market regulator SEBI chief Madhabi Puri Buch of continuing to draw a salary from ICICI Bank despite her current role as SEBI Chairperson. Following this, the private lender ICICI Bank on Monday (September 2) issued a clarification related to it through an exchange filing.
As per the regulatory filing, ICICI bank iBanksponse to the allegations said, “ICICI Bank or its group companies have not paid any salary or granted any ESOPs to Ms. Madhabi Puri Buch after her retirement, other than her retiral benefits. It may be noted that she had opted for superannuation with effect from October 31, 2013.”
“During her employment with the ICICI Group, she received compensation in the form of salary, retiral benefits, bonus and ESOPs, in line with applicable policies,” ICICI Bank added in the BSE exchange filing.
ICICI issues statement – It has come to our attention that there are certain reports in media alleging payment of salary by ICICI Group to Madhabi Puri Buch, Chairperson, SEBI. In this connection, we would like to clarify as follows: “ICICI Bank or its group companies have not… https://t.co/Hrw8hRuSuo pic.twitter.com/YJTghSH59H
— ANI (@ANI) September 2, 2024
About the allegation
The Congress party has recently raised serious questions about the SEBI chief Madhabi Puri Buch’s financial dealings and potential conflicts of interest. The party has demanded a clarification from Prime Minister Narendra Modi and suggested that the Supreme Court should investigate these claims.
#WATCH | Congress leader Pawan Khera says “The role of SEBI is to regulate the share market where we all invest our money. It has a very important role to play. Who appoints the chairperson of SEBI? This is the Appointments Committee of the Cabinet, Prime Minister and Union HM… pic.twitter.com/aEYLPLe7gL
— ANI (@ANI) September 2, 2024
The core of the Congress’ allegations is that since Buch assumed office at SEBI in 2017, she has allegedly been receiving payments from ICICI Bank, where she was previously been employed.
The part also has raised serious concerns about whether was inappropriately benefiting from ICICI’s Employee Stock Ownership Plans (ESOPs) while adjudicating complaints involving the bank.
The controversy surrounding Buch has been in the limelight after the allegations from a recent Hindenburg Research report, which alleged she and her husband had stakes in offshore funds.
“Under the Bank’s ESOP rules, the ESOPs vest over the next few years from the date of allotment. As per rules existing at the time of her ESOP grant, employees including retired employees had the choice to exercise their ESOPs anytime up to a period of 10 years from the date of vesting,” added ICICI Bank in the regulatory filing.
ICICI Bank Share performance
The shares of the company on Monday ended the day at Rs 1,229.05, down by 0.012 per cent.
