Madhabi Puri Buch, Chairperson of the Securities and Exchange Board of India (SEBI), has received strong support from her former batchmates at the Indian Institute of Management Ahmedabad (IIM-A). They have dismissed recent allegations against her as unfounded and potentially damaging to the credibility of SEBI, a crucial democratic institution.
Buch, a 1988 alumnus of IIM-A, has been embroiled in controversy recently, leading to an upcoming investigation by Parliament’s Public Accounts Committee (PAC). Her IIM-A batchmates have taken a stand to counter these claims, emphasizing the need for accurate information and maintaining the integrity of both Buch and SEBI.
Key Points from the Batchmates’ Statement
- ESOP Allegations: One accusation was that Buch received Employee Stock Ownership Plans (ESOPs) from ICICI Group beyond the permissible 3-month limit. Her batchmates clarified that the ESOP provisions differ for resigning versus retiring employees. Buch, having retired, had up to 10 years to exercise her options, which is a common practice.
- Retiral Benefits: Another allegation involved discrepancies in her retiral benefits. The batchmates explained that Buch’s income variations were due to fluctuations in stock market prices and the nature of ESOPs, which are filed as ‘salary’ under Income Tax Rules. There were no inconsistencies in her retiral benefits or pension.
- TDS Payments: It was alleged that ICICI Bank paid Tax Deducted at Source (TDS) on Buch’s behalf. The batchmates countered this, stating that Buch herself paid the TDS, not ICICI Bank.
- Holding ESOPs While at SEBI: It was claimed that Buch improperly held and transacted ESOPs while serving on the SEBI board. The batchmates confirmed that SEBI’s guidelines permit board members to hold and transact ESOPs, provided they comply with disclosure requirements.
- Moonlighting with a Private Equity Firm: The batchmates addressed claims that Buch was involved with a private equity firm while employed at ICICI Bank. They affirmed that ICICI Bank was aware of and approved her role, and Buch had a stand-still arrangement with the bank during her time in Singapore.
Broader Context
Recent allegations against Buch also include claims of corruption and conflicts of interest, particularly concerning her rental income from properties linked to Wockhardt and payments received from ICICI Bank after joining SEBI. Wockhardt has denied these allegations, and ICICI Bank has also refuted claims of wrongdoing.
Additionally, SEBI employees have protested, citing a “toxic work culture” and calling for Buch’s resignation, amid controversies related to SEBI’s investigation into Adani Group.
Buch’s batchmates at IIM-A have strongly defended her, calling the allegations against her false and misleading. Their support aims to uphold the integrity of SEBI and ensure that Buch’s contributions to the institution are not undermined by baseless claims.
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