Buchs' Answers Raise More Questions, 'Facts' on Their Financial Dealings Not Contradicted: Cong

Congress has accused SEBI chairperson Madhabi Buch and her husband of not adequately addressing concerns about their financial dealings and potential conflicts of interest. Despite Buch's rebuttal, Congress demands clarity on whether these issues affect SEBI's integrity. FM Sitharaman has acknowledged the allegations but did not pass any judgement, stating that the situation remains under review.

New Delhi: The Congress on Tuesday said the "answers" being provided by SEBI chairperson Madhabi Buch and her husband raise even more questions and asserted that "the facts" that have been put out on their financial dealings have not been contradicted so far by anyone.

Congress general secretary in-charge communications Jairam Ramesh also asked whether Finance Minister Nirmala Sitharaman and Prime Minister Narendra Modi were aware of these "facts" since 2022 at least and do they really think that these "facts are trivial" and do not, in any way, compromise the functioning of the capital markets regulator.

His remarks come a day after Sitharaman said Madhabi Buch and her husband Dhaval Buch are defending themselves and putting out facts contradicting the allegations of Congress. In a post in X, Ramesh said, "The finance minister has finally broken the Union government's silence on the issue of the multiple conflicts of interest of the SEBI chairperson.

"She has said that the SEBI chairperson and Mr. Buch are 'answering on allegations of conflict of interest'. But these answers raise even more questions," Ramesh said. The facts that have been put out on the financial dealings of the SEBI chairperson and her husband have not been contradicted so far by anyone, the Congress leader said.

"The question now is whether the finance minister and the non-biological PM were aware of these facts since 2022 at least. Do they really think that these facts are trivial and do not, in any way, compromise the functioning of the capital markets regulator?" he said.

Has the Supreme Court-mandated SEBI investigation into the Adani Group really been fair, impartial, and complete, Ramesh asked. "The last has not been heard on this matter," he said.

To a question on her assessment of the situation involving Madhabi Buch, Sitharaman on Monday said: "Quite a few of the allegations have been answered... I think the facts will have to be taken on board." This was the first time that Sitharaman had spoken on the issue.

On being asked whether she was satisfied with Madhabi Buch's answers, Sitharaman said, "I'm not here to judge that." In a joint statement issued last Friday, Madhabi Buch and her husband denied the allegations of impropriety and conflict of interest levelled by the Congress, saying they are false, malicious and motivated.

In a point-by-point rebuttal of the Congress allegations, the Buchs said Madhabi has made all disclosures and followed SEBI's recusal guidelines.

In the joint statement -- the second since US-based short seller Hindenburg Research charged her of not being motivated enough to act on allegations against the Adani group due to a conflict of interest -- the Buchs also addressed issues raised by opposition Congress over receiving payments from her previous employer ICICI Bank while being a whole-time member of SEBI.

The statement said Buch never dealt with any file involving 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 SEBI in 2017.

According to the statement, she never handled files involving the Mahindra Group, Pidilite Industries, Dr Reddy's Laboratories Ltd, Alvarez and Marsal, and Sembcorp -- the firms that had employed her husband at some time during her stint at Sebi -- as also that pertaining to her previous employer ICICI Bank at any stage after joining the regulator.

The payments that she got from ICICI Bank while being in SEBI pertained to contributory annuity scheme and exercising of ESOPs at various stages over 10 years, it said.

"Sebi's guidelines permit board members, including the chairperson, to hold and transact in ESOPs," Buch's statement said. Hindenburg had alleged that the Buchs had previous investments in a fund that was part of a network of funds used by two Adani associates to round-trip money and inflate group stock prices.

The Congress alleged a conflict of interest in dealings with ICICI, where she worked until 2011, as well as with Mahindra Group and four other companies due to consulting fees given by them to her husband Dhaval Buch.

"We are upright and honest professionals and have led our respective professional lives with transparency and dignity," the Buchs had said, describing their work record as "unblemished" and that they will demolish all "motivated allegations even in future".