ICICI Bank has denied allegations that Securities and Exchange Board of India (SEBI) Chairperson Madhabi Puri Buchwas drawing a salary from the ICICI Bank group despite having left the entity, in violation of norms.

“It has come to our attention that there are certain reports in media alleging payment of salary by ICICI Group to Madhabi Puri Buch, Chairperson, SEBI. In this connection, we would like to clarify as follows: ICICI Bank or its group companies have not paid any salary or granted any ESOPs [employee stock ownership plan] to Ms. Madhabi Puri Buch after her retirement, other than her retiral benefits,” ICICI Bank said in a statement issued to the stock exchanges.

The bank said Ms. Buch had opted for superannuation with effect from October 31, 2013. “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,” the bank said.

“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.

“As per Income Tax rules, the difference between the price of the stock on the day of exercise and the allotment price is treated as perquisite income and is reflected in Part B of the Form- 16 of employees, including retired employees,” it added.

“The Bank is required to deduct the perquisite tax on this income. In addition, Form-16 covers the payment made towards the retiral benefits of former employees,” it further said to clarify its stance. 

The bank reiterated that all payments made to Ms. Buch after her retirement had accrued to her during her employment phase with the group, and these payments comprised ESOPs and retiral benefits.