Madhabi Puri Buch, chairperson of the Securities and Exchange Board of India (SEBI), has received backing from her former classmates at the Indian Institute of Management Ahmedabad (IIM-A), who have dismissed the allegations against her as unfounded.
The batchmates argue that the accusations not only impact Buch personally but also threaten the integrity of an important democratic institution. Buch, an alumna of IIM-A’s class of 1988, has been under scrutiny amid claims regarding her professional conduct and financial dealings.
In their statement, Buch’s former classmates expressed skepticism about the narrative surrounding her. They have conducted their own review, including consultations with informed sources and a review of public documents. Their findings indicate that the claims against Buch, which are based on data from her income tax returns, are inaccurate.
Key Points from the Statement:
- ESOPs Claims: An accusation was made that Buch received Employee Stock Option Plans (ESOPs) from ICICI Bank beyond the allowed period. Her batchmates clarified that ICICI’s ESOP scheme allows employees who retire (as opposed to those who resign) up to 10 years to exercise their options. Buch retired from ICICI Bank, thus she adhered to the scheme’s provisions.
- Retiral Benefits: The statement refuted claims of irregularities in Buch’s retiral benefits. It confirmed that Buch, like other ICICI employees, was part of a contributory annuity scheme that provided steady payments. Variations in reported income due to stock option exercises are attributed to market fluctuations.
- Tax Deductions: The batchmates addressed concerns about whether ICICI Bank paid Tax Deducted at Source (TDS) for Buch. They clarified that Buch personally paid the TDS, as required, when exercising her stock options.
- Holding and Transacting ESOPs: The statement confirmed that SEBI guidelines permit its members, including the chairperson, to hold and transact ESOPs if they comply with disclosure requirements. Buch’s adherence to these requirements is expected to be confirmed soon.
- Private Equity Involvement: It was noted that Buch’s work with a private equity firm during her time in Singapore was approved by ICICI Bank, with no conflict of interest. Her decision to leave ICICI and work in Singapore was communicated and sanctioned by the bank.
The Congress party has recently accused Buch of corruption, alleging that she rented properties to Carol Info Services, a firm connected to ongoing investigations. Wockhardt, linked to Carol Info Services, has denied these allegations as baseless. Additionally, there have been protests by SEBI employees in Mumbai, criticizing the work culture within the regulator and calling for Buch’s resignation. This unrest began following allegations of conflict of interest related to SEBI’s investigation into the Adani Group.
