Amid the row over allegations against SEBI chairperson Madhabi Buch, the Congress on Thursday (September 5, 2024) demanded an independent inquiry into the matter, asserting that it is in the national interest to have a probe as foreign investors were getting concerned and there were doubts about the integrity of India's stock markets.

The Opposition party said only an objective, independent inquiry with the SEBI Chairperson Ms. Buch stepping aside was needed until then can restore trust and confidence in India’s stock markets and hence the economy.

Chairman of Professionals' Congress and Data Analytics Praveen Chakravarty claimed that lots of skeletons are tumbling out of the cupboard of SEBI, which is one of the nation’s most important institutions.

Also Read: On SEBI chairperson’s conflicts of interests

"On 10 August, a foreign research firm issued a report with allegations against the SEBI chairperson and her family regarding offshore funds, for which they claimed to have documentary evidence. This allegation was made by a research firm, not by any political party. In response, a cabinet minister of the Modi government addressed the issue," he said at a press conference at the AICC headquarters.

Why did they respond to the allegation made by a foreign research firm against an individual at SEBI, Chakravarty asked.

"SEBI Chairperson Madhabi Puri Buch is not responding, but ICICI is. Why?" he said.

Mr. Chakravarty also pointed out that 500 SEBI officers have written a letter to the Government of India alleging that the work environment under Buch's leadership is "toxic, abusive and fearful".

"Today, a news report says that Ms. Madhabi Puri Buch did have two employments when she was at ICICI. She was also employed in a private equity fund called Greater Specific Capital... Ms. Buch may have been recruited as a finance professional, but this raises a long list of allegations and questions. Doesn't it raise more concern?" he said.

Also Read: SEBI blames ‘external forces’ for fuelling discontent among its staff, says they are well-paid but misguided

Why is there hesitation in conducting an impartial and objective inquiry, the Congress leader asked.

"As a former financial professional myself, I have received several calls from foreign investors asking, 'What is the status of the market regulator? Can we trust India's securities market? What is happening with the integrity of the market regulator?'" he said.

Mr. Chakravarty asserted that the Congress wants a very strong, robust stock market in the country.

"We want foreign capital in our stock market. This is too important for the country; it is a national issue. The real question is: Who is being protected here? Why is the ED silent on Madhabi Puri Buch?" he said.

"This is a national issue. If foreign investors are getting concerned and there are doubts about the integrity of India's stock markets because of a series of allegations against the chairperson of the market regulator, is it not in the national interest to conduct an inquiry to get to the root of this matter and resolve it," Mr. Chakravarty said.

He said several people are coming out with information and journalists are carrying out investigations to bring out the truth. He also highlighted the portal https://indiawhistleblower.com where information can be posted anonymously.

The Congress also shared information about it on its X handle.

"Be the voice for change! Blow the whistle for a brighter, progressive India! Share your evidence anonymously & securely - your identity is 100% protected. Submit now and help shape a better future for our nation!" the Congress said, sharing the website's address.

The Congress on Monday (September 2, 2024) had levelled fresh conflict of interest allegations against SEBI Chairperson Buch and asked Prime Minister Narendra Modi to come clean as the head of the appointments committee of the cabinet on her appointment.

The Opposition party had said the Supreme Court should take cognisance of these fresh revelations and demanded that the Securities and Exchange Board of India (SEBI) chairperson should be dismissed immediately.

At a press conference, the Congress had alleged that since the current SEBI chairperson took office in 2017, she has not only been drawing a salary from SEBI but has also been holding an office of profit at the ICICI Bank, continuing to receive income from them to this very day.

Subsequently, the ICICI Bank said it has not paid any salary or granted ESOPs to Ms. Buch after her retirement on October 31, 2013, as alleged by the Congress.

The Congress, in turn, had questioned the ICICI Bank's assertion that it had not paid any salary or granted ESOPs to the SEBI Chairperson after her retirement and asked that if the amount paid to her was her "retiral benefit", why was it non-uniform both in terms of its frequency and amount.

These allegations come days after Hindenburg Research launched a fresh broadside against Ms. Buch, alleging that she and her husband had stakes in obscure offshore funds used in the Adani money siphoning scandal.

SEBI Chairman Buch had denied the allegations levelled against them as baseless and asserted that their finances are an open book. Adani Group had also termed Hindenburg allegations as malicious and manipulative of select public information, saying it has no commercial relationship with the SEBI chairperson or her husband.