Cong demands independent inquiry into allegations against SEBI chief

NEW DELHI: Amid the row over allegations against SEBI chairperson Madhabi Buch, the Congress on Thursday demanded an independent inquiry into the matter, asserting that it is in national interest to have a probe as foreign investors were getting concerned.

The main opposition party said only an objective, independent inquiry with the SEBI Chairperson Buch stepping aside was needed which can restore trust and confidence in India’s stock markets and hence the economy.

Chairman of Professionals’ Congress and Data Analytics Praveen Chakravarty claimed that lots of skeletons are tumbling out of the cupboard of SEBI, which is one of the nation’s most important institutions.

“On 10 August, a foreign research firm issued a report with allegations against the SEBI chairperson and her family regarding offshore funds, for which they claimed to have documentary evidence. This allegation was made by a research firm, not by any political party. In response, a cabinet minister of the Modi government addressed the issue,” he said at a press conference at the party headquarters here.

Why did they respond to the allegation made by a foreign research firm against an individual at SEBI, Chakravarty asked. “SEBI Chairperson Madhabi Puri Buch is not responding, but ICICI is. Why?” he said.

Chakravarty also pointed out that 500 SEBI officers have written a letter to the government alleging that the work environment under Buch’s leadership is “toxic, abusive and fearful”.

“Today, a news report says that Ms. Madhabi Puri Buch did have two employments when she was at ICICI. She was also employed in a private equity fund called Greater Specific Capital... Ms. Buch may have been recruited as a finance professional, but this raises a long list of allegations and questions. Doesn’t it raise more concern?” he said.

Why is there hesitation in conducting an impartial and objective inquiry, he asked.

“As a former financial professional myself, I have received several calls

from foreign investors asking, ‘What is the status of the market regulator? Can we trust India’s securities market? What is happening with the integrity of the market regulator?’” he said.

Chakravarty asserted that the Congress wants a very strong, robust stock market in the country.

“We want foreign capital in our stock market. This is too important for the country; it is a national issue. The real question is: Who is being protected here? Why is the ED silent on Madhabi Puri Buch?” he said.

“This is a national issue. If foreign investors are getting concerned and there are doubts about the integrity of India’s stock markets because of a series of allegations against the chairperson of the market regulator, is it not in the national interest to conduct an inquiry to get to the root of this matter and resolve it,” Chakravarty said. with agency inputs