Congress’s allegations
Today the Congress party has raised serious concerns about a potential conflict of interest involving Securities and Exchange Board of India (SEBI) Chairperson Madhabi Puri Buch itself. Congress spokesperson Pawan Khera on Monday alleged that Buch continued to draw a salary from ICICI Bank while she was a member of SEBI, which, according to him, represents a serious breach of ethics and accountability in public service.
Congress spokesperson Pawan Khera press Conference [In Hindi]
मतलब हिंडेनबर्ग रिपोर्ट भी सही थी! क्या अब मोदी सरकार जांच कराएगी!!!?? #pawankhera #SEBI pic.twitter.com/nZ5ef8Lumu
— ShivRaj Yadav (@shivaydv_) September 2, 2024
ICICI Bank denies Congress’s allegations
ICICI wrote:
It has come to our attention that there are certain reports in media alleging payment of salary
by ICICI Group to Ms. Madhabi Puri Buch, Chairperson, SEBI. In this connection, we would like
to clarify as follows:
“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.
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.
As per Income Tax rules, the difference between the price of the stock on the day of exercise
and the allotment price is treated as perquisite income and is reflected in Part B of the Form16 of employees, including retired employees. The Bank is required to deduct the perquisite tax
on this income. In addition, Form -16 covers the payment made towards the retiral benefits of
former employees.
All the payments made to Ms. Buch post her retirement had accrued to her during her
employment phase with the ICICI Group. These payments comprise ESOPs and retiral benefits.”
Madhabi Puri Buch and ICICI
She had a long tenure with the bank, holding various positions, including CEO of ICICI Securities. However, she retired from ICICI Bank in 2013 and subsequently joined the Securities and Exchange Board of India (SEBI) in 2017.