The Congress on Saturday mounted fresh attack against SEBI Chairperson Madhabi Puri Buch, accusing her of trading in listed securities for six years by taking advantage of the official position that gave her access to the unpublished price sensitive information (UPSI).
The listed securities Madhabi Puri Buch traded in was worth ₹36.9 crore which in turn was allegedly invested in Chinese firms at a time when India is confronting China’s aggressive geopolitical ambitions, the Congress alleged.
Addressing media on Saturday, Pawan Khera, Chairman of Media and Publicity Department of the AICC, alleged fresh conflict of interest instance against the SEBI chief as he said that from 2017-2023, Buch, as a Whole Time member and later as the SEBI Chairperson, traded in the listed securities worth ₹36.9 crore.
This is in violation of the SEBI’s Code on Conflict of Interest for the Members of Board (2008), he said.
The Congress charged that Buch lied publicly that Agora Advisory Pvt Ltd became ‘immediately dormant’ on her joining the SEBI. She still holds a 99 per cent stake in it, and the company has actively provided consultancy/advisory services, receiving ₹2.95 crore from six SEBI-regulated entities -- including Mahindra & Mahindra, Dr. Reddy’s Laboratories and Pidilite -- between 2016-2024, the Congress alleged.
In the verbal duel between the Buch couple and Congress, the SEBI chief said a day before that she had made all necessary disclosures and complied with recusal guidelines in dealing with companies such as Mahindra Group that hired her husband. She rejected Congress’ allegations of impropriety as “false, malicious and motivated” in a joint statement issued along with her husband Dhaval Buch.
The joint statement insisted that Buch never dealt with any file related to Agora Advisory and Agora Partners -- the advisories where she held 99 per cent and continued to earn revenue even after she joined the market regulator body in 2017.
However, Khera told reporters that Dr. Reddy’s Laboratories and Pidilite in their individual responses confirmed that they made payments to Dhaval Buch via Agora Advisory Private Ltd.
Payments from listed companies regulated by SEBI to Agora Advisory Private Ltd violate Section 5 of Code on Conflict of Interests for Members of Board (2008), he charged
The Congress leader sought to know from Mahindra & Mahindra whether they paid large sums to both Dhaval Buch personally and Agora Advisory PrivateLtd, in which Madhabi Buch holds a 99 per cent stake.
“If yes, did Mahindra & Mahindra fail to conduct KYC and due diligence before transferring substantial public funds to Agora Advisory Private Limited? If Dhaval Buch was paid ₹4.78 crore personally, they must also clarify the payment of ₹2.59 crore to Agora Advisory Private Ltd, a supposedly ‘dormant’ company,” Khera asked.
Khera shared details of SEBI chief’s investment in the US between 2021 and 2024.
According to that, Khera claimed that she had invested in Vanguard Total Stock Market ETF (VTI), ARK Innovation ETF (ARKK), Global X MSCI China Consumer (CHIQ) and Invesco China Technology ETF (CQQQ).
“It is deeply concerning to learn that Madhabi Buch, the SEBI chairperson, has been investing in Chinese funds. When the Prime Minister of India can publicly give China a clean chit, it’s hardly surprising that a key regulatory figure is engaging in investments linked to China,” Khera said.
Khera at the press briefing also recapped previous conflict of interest allegations levelled by the Congress against Buch which began since September 2.