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Private sector lender ICICI Bank on Monday denied paying any salary to Securities and Exchange Board of India (SEBI) chief Madhabi Puri Buch post her retirement from the bank on October 31, 2013.
“ICICI Bank or its group companies have not paid any salary or granted any ESOPs (employee stock ownership plan) to 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,” the lender said in an exchange filing. “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,” the notice said.
Earlier today, the Congress party accused Buch of holding an office of profit at ICICI Bank and continuing to receive income from the bank to this date. “Between 2017 and 2021, as a Whole Time member of SEBI, the current SEBI Chairperson received a salary from ICICI Bank amounting to Rs 12.63 crore This is in violation of Section 54 of the SEBI (Employees’ Service) Regulations, 2001, and Section 5 of SEBI’s Code on Conflict of Interests for Board Members (2008), both of which prohibit whole time employees of SEBI from taking benefit from any other organisation and engaging in activities that entail in receiving a salary or fee,” said a statement released by the All India Congress Committee.
ESOP rules
Under the bank’s ESOP rules, the ESOPs vest over the next few years from the date of allotment, ICICI Bank. 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.
Per Income Tax rules, the bank said 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 Form 16 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 Buch post her retirement had accrued to her during her employment phase with the ICICI Group. These payments comprise ESOPs and retiral benefits,” the notice said.
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