Buch should step aside to uphold credibility of SEBI

Madhabi Puri Buch, the first female chairperson of the Securities and Exchange Board of India (SEBI), is currently facing multiple allegations that have sparked significant controversy. The controversy is simply refusing to die. It's time she conducts herselfresponsibly and takes note of the seriousness of “wrongdoings.” In the last one week, more accusations have surfaced against her. She is battling a barrage of allegations on three fronts.

First, Conflict of Interest: Allegations have surfaced that Buch and her husband held investments in offshore funds linked to the Adani Group, raising questions about SEBI’s impartiality in its investigation of the conglomerate. Second, Financial Misconduct: Multiplereports suggest that Buch continued to earn revenue from a consultancy firm during her tenure at SEBI, which could be a breach of rules. Third, Toxic Work Culture: Internal dissent has grown, with SEBI employees protesting against what they describe as a toxic work environment under Buch’s leadership. She has denied most of them. Mere denial is not enough Mrs Buch. She must take note of these serious allegations and not let the organisation's reputation get tarnished as millions of people invest in the market with the hope that the watchdog takes care of their interests in case of wrongdoings.

The perception is that the fence is eating the crop. Also, Butch’s silence after her response to Hindenburg’s allegations has led to more confusion. A media mogul, who’s being investigated by the SEBI for allegedly siphoning funds from his company, has joined the melee and accused Buch of thwarting the sale of hisbeleaguered business. Some officers of the watchdog have complained of a “toxic work culture” under SEBI chief’s leadership. After the regulator denied allegations in a five-page press release, over 200 employees did not take this at face value, they staged a silent protest in Sebi’s Mumbai campus last week. This shows, all is not well under her leadership. She has let a situation develop where the watchdog is facing a credibility crisis today.

While the government is silent over the crisis, the Opposition Congress Party is going hammer and tongs against Buch to pin her down by pointing out more and more wrongdoings by her. This has put Buch’s leadership and SEBI’s credibility under intense scrutiny. A week ago, the Congress Party flagged more ‘conflict of interest’ issues. It alleged that a consultancy firm promoted by her had earned about Rs 3 crore, with most of the money coming from Mahindra and Mahindra alleging a “criminal conspiracy”. On their part, M& M defending their point of view clarified that “We consider these allegations false and misleading”. Going a step further, the Congress party asked the Prime Minister if he was aware of Buch’s “ties to a conflicted entity” and her spouse was getting “a substantial income from M&M after his retirement.”

Though Buch and her husband Dhaval Buch issued a detailed rebuttal of various corruption and conflict of interest accusations characterising them as “false, incorrect, malicious and motivated”, the main Opposition party is not letting her live in peace. In a fresh salvo against her, the Congress Party has accused Buch of investing in Chinese funds. She has been alleged to have traded in the listed securities worth about Rs. 37 crores during her tenure at the regulatory body, violating its conduct-of-interest policy. She must clarify these allegations particularly the allegations of trading in stocks between fiscal years 2018 and 2023 with the highest value of transactions totalling around Rs 20 crore recorded in fiscal year 2019. To uphold SEBI’s credibility and the chair's fairness, Buch should step aside from the post. The government too should be serious about resolving the controversy at the earliest.