ICICI Bank has responded to allegations made by Congress leader Pawan Khera regarding the salary of SEBI Chairperson Madhabi Puri Buch. In a statement, the bank clarified that it has not paid any salary or granted any Employee Stock Options (ESOPs) to Buch after her retirement, aside from her retiral benefits. Buch retired from the ICICI Group on October 31, 2013.
Khera had alleged that Buch received a total of ₹16.8 crore in salary from ICICI Bank while serving as a full-time member of SEBI, raising concerns about a potential conflict of interest. He emphasized the importance of transparency in the regulatory body, questioning how SEBI could ensure fair regulation if its head was receiving compensation from a private entity.
ICICI Bank detailed that during Buch’s tenure, she was compensated through salary, retiral benefits, bonuses, and ESOPs in accordance with the bank’s policies. The bank explained that under its ESOP rules, options vest over several years, and employees, including retirees, have the option to exercise their ESOPs within ten years from the vesting date. The difference between the stock’s exercise price and the allotment price is treated as perquisite income, which is subject to tax deductions.
The allegations against Buch come amid ongoing scrutiny following the Hindenburg report, which claimed she and her husband had stakes in offshore funds linked to the Adani Group. Both Buch and SEBI have denied these claims, but the controversy has intensified calls for a thorough investigation into her conduct and the integrity of the regulatory framework.
As the political discourse continues, Congress is demanding accountability and transparency in SEBI’s operations, asserting that the credibility of the financial regulatory body is at stake. The situation remains fluid as further developments unfold.
