Madhabi Puri Buch invested in listed securities and foreign funds, violated SEBI code, alleges Congress and allies

Madhabi Puri Buch

SEBI Chairperson Madhabi Puri Buch again came under criticism on September 14, with the opposition Congress and some of its allies alleging that the markets regulator’s chief had indulged in investments into listed securities and foreign funds including those from China, thereby violating SEBI’s conflict of interest code.

In a press conference, Congress Spokesperson Pawan Khera said Buch, first as a whole-time member and then as the SEBI Chairperson, traded in listed securities worth Rs 36.9 crore, between 2017-2023.

“This is in violation of section 6 of SEBI’s Code on Conflict of Interest for Members of Board (2008),” the Congress said in its press release.

The Party also alleged that between 2017-2021, Buch held foreign assets.

Between 2021-2024, she made investments in the US, in the following funds, according to the Congress: Vanguard Total Stock Market ETF (VTI), ARK Innovation ETF (ARKK), Global X MSCI China Consumer (CHIQ) and Invesco China Technology ETF (CQQQ).

Is the PM aware that the SEBI Chairperson has been trading in listed securities while in possession of Unpublished Price Sensitive Information? Is the PM aware that Ms. Madhabi Puri Buch has made high value investments outside India? If yes, what is the date of pic.twitter.com/gB8XWMhpFa
Congress (@INCIndia) September 14, 2024

“It is deeply concerning to learn that Ms. Madhabi P. Buch, the SEBI Chairperson, has been investing in Chinese funds,” the Congress said in the press release. "We hereby ask: When was the first time she declared foreign assets and to which agency of the government? Its it true that Ms. Madhabi P. Buch was actively involved in Agora Partners PTE (Singapore) as she was a signatory to the bank account?"

Meanwhile, commenting on the same issue, Priyanka Chaturvedi, Rajya Sabha MP and Deputy Leader at Shiv Sena UBT, said: “Did @SEBI_India Chair Madhabi Buch really think all these investments in China markets, ESOPs & multiple salaries, Advisory fees, stock trading are not in conflict with her role?”

Did @SEBI_India Chair Madhabi Buch really think all these investments in China markets,ESOPs&multiple salaries , Advisory fees, stock trading are not in conflict with her role?Of course she did, but she knew both best friends - Modani jis will protect her, quid pro quo deal here pic.twitter.com/uXCEtstRcAPriyanka Chaturvedi (@priyankac19) September 14, 2024

The developments come a day after Buch her husband Dhaval Buch issued a statement in their personal capacity, regarding Agora Advisory, clarifying that she has never dealt with any file involving the consultancy firm, or any of the business groups named in recent allegations, after joining SEBI.