Shares of Wockhardt Ltd fell over 5 percent on September 6 after Congress accused Securities and Exchange Board of India (SEBI) chairperson Madhabi Puri Buch of conflict of interest with the drug firm.
Congress alleged Buch received rental income from an entity affiliated with a Mumbai company that the market regulator was investigating for various cases, including that of insider trading.
"Madhabi Puri Buch had become a Whole Time Member of SEBI in 2018. Now, after becoming a whole time member, she gave one of her properties on rent. In the financial year 2018-19, she got a rent of Rs 7 lakh. She received rent of Rs 36 lakh for the same property in 2019-20, which increased to Rs 46 lakh by this year.
"The name of the company to which Madhabi Puri Buch gave her property is Carol Info Services Limited, which is a part of Wockhardt Company. Wockhardt is the same company, complaints related to which SEBI is continuously dealing with," said Khera.
"Wockhardt is a company on which SEBI is continuously giving orders and dealing with its cases. Madhabi Puri Buch is the chairperson of the same organisation (SEBI) which has complaints against Wockhardt before it. There was a case of insider trading too, her organisation (SEBI) dealt with insider trading case of Wockhardt too. This is a conflict of interest, I would call it corruption. This is not just conflict of interest, this is out and out corruption," Khera added at a press conference in New Delhi.
LIVE: Congress party briefing by Shri @Pawankhera at AICC HQ. https://t.co/OHesoii9kA
Congress (@INCIndia) September 6, 2024
At 2:20 pm on September 6, following the press conference by Khera, Wockhardt shares were trading 5 percent lower at Rs 1,034.55 apiece.
"She has so far received more than Rs 2.16 crore as rent from that company. Is this ethically and legally correct?" asked Khera.
Congress leader Jairam Ramesh said on X platform (formerly Twitter), "How much more evidence is needed to show the collapse of transparency and integrity, as far as the regulator of capital market is concerned? By the NSE's data there are now 10 crore Indians with unique PANs who have some form of investment in this market. Don't they deserve better? Why does he not move? What is he afraid of?"
Earlier this week, ICICI Bank said it has not paid any salary or granted ESOPs to Sebi chairperson Madhabi Puri Buch after her retirement on October 31, 2013, as alleged by the Congress.
Congress alleged that Buch, who joined Sebi as a member in 2017 and subsequently became its chairperson, received Rs 16.8 crore from ICICI Bank as salary and other compensation.
“ICICI Bank or its group companies have not paid any salary or granted any ESOPs to Madhabi Puri Buch after her retirement, other than her retiral benefits. It may be noted that she had opted for superannuation with effect from October 31, 2013,” the bank said in a statement.
During her employment with the ICICI Group, she received compensation in the form of salary, retiral benefits, bonus and ESOPs, in line with applicable policies, it added.
“Under the bank’s ESOP rules, the ESOPs vest over the next few years from the date of allotment. As per rules existing at the time of her ESOP grant, employees, including retired employees, had the choice to exercise their ESOPs anytime up to a period of 10 years from the date of vesting,” it said.
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