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SEBI Chairperson Madhabi Puri Buch and her husband released a personal statement on Friday stating that the former was compliant with all the market regulator’s disclosure and recusal norms.
“Madhabi has complied with all the disclosure and recusal guidelines of SEBI, and maintained a proactive continuing recusal list with SEBI over and above the requirements under the guidelines,” the note said.
It added that the couple’s income tax returns had been obtained fraudulently, and the details had been twisted deliberately to create a false narrative, amounting to a breach of privacy and a violation of the Income Tax Act.
Consulting assignments
Madhabi had disclosed her shareholding in Agora Advisory and Agora Partners right from the time she became a whole-time member, the note said. Dhaval’s consulting assignments were undertaken under a company structure to isolate the income generated and report accruals and expenses related to these assignments, as separate from his personal income and expenses.
The consulting assignments of Dhaval and the firms Agora Advisory in India and Agora Partners in Singapore were based on merit. Madhabi did not deal with any file involving Agora Advisory, Agora Partners, the Mahindra Group, Pidilite, Dr Reddy’s, Alvarez and Marsal, Sembcorp, Visu Leasing, or ICICI Bank at any stage after her joining SEBI, the note said.
The most recent allegations allege that Agora Advisory had provided services to Sembcorp and Visu Leasing while Madhabi was a Whole Time Member (WTM) of SEBI. “This too is patently false. These assignments were concluded and income accrued in 2016-17, before Madhabi even joined SEBI as WTM. Further, it has been claimed that ICICI Bank also paid Agora. What was concealed, is the fact that these were interest payments on deposits. Ascribing motive to it is unfortunate and defamatory,” the statement said.
ICICI Bank-related matters
The provisions of ICICI Bank’s ESOP scheme were different for resigning and retiring employees, the note said. Madhabi retired from ICICI Bank and was allowed to exercise her vested options for up to 10 years. SEBI’s guidelines permit board members, including the Chairperson, to hold and transact in ESOPs. Requisite disclosures and recusals are to be made.
“Madhabi had disclosed her ESOP holdings since 2017 when she first joined SEBI, and disclosed each subsequent transaction. This forms a part of contemporaneous official records of SEBI. Madhabi has never dealt with any files related to the ICICI Group of Companies during her tenure,” the statement said.
The pension payments were consistent and part of a contributory annuity scheme from ICICI Prudential. The uneven amounts related to the exercise of ESOPs at various stages over the 10 years. The perquisite value varied depending on when the options were exercised and the prevailing market prices.
ICICI Bank did not pay TDS from its own funds. “When an employee or ex-employee exercises their options, ICICI Bank collects the required perquisite tax (for TDS) from the individual upfront and pays the same to the tax authorities. This was the process followed with Madhabi as well,” the statement said.
It further added that Madhabi did not engage in any unauthorised external employment while working at ICICI Bank. In 2011, she was granted a long leave (unpaid) by the bank to join her husband, who was working in Singapore at that point of time. During her time there, in Singapore, with ICICI Bank’s full and prior approval, she took up a position with a private equity Firm in Singapore. When it became clear in 2013 that she would remain in Singapore, she superannuated from ICICI Bank as per the bank’s rules. The private equity firm and aware of this fact and the arrangement was legal and transparent.
Rental income
Regarding the rental income on a property owned by Madhabi and Dhaval, the Buchs said it was leased out in the normal course and the lessee was an associate of Wockhardt. Madhabi has not dealt with any files related to Wockhardt.
The assertion that the rental rates were “off market” are patently false and all necessary disclosures, including details about the property’s market value and the rental income derived from it, have been made to the regulator since 2017.
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