Sebi chief Buch says had recused from ICICI, Mahindra and other companies

Mumbai: Sebi chairperson Madhabi Puri Buch, along with her husband Dhaval Buch, on Friday issued a statement listing the companies from which she had recused herself, including prominent firms like Mahindra Group, ICICI Group, and Pidilite, which have a significant presence in the stock exchanges.

The market regulator chief’s statement comes in response to the allegations made by Congress spokesperson Pawan Khera, raising conflict-of-interest questions.

“Madhabi has complied with all the disclosure and recusal guidelines of SEBI, and in fact, maintained a proactive continuing recusal list with SEBI over and above the requirements under the guidelines,” the statement said.

Buch claimed that the “baseless allegations” reflected a clear disregard for the Securities and Exchange Board of India’s (Sebi) comprehensive legal framework and was motivated to mislead the public.

“Such allegations, devoid of factual support, seek to tarnish the reputation of individuals, respected corporates, as well as institutions of the country,” her statement said.

Companies in question

Buch said she never dealt with any file involving Agora Advisory, Agora Partners, the Mahindra Group, Pidilite, Dr Reddy’s, Alvarez and Marsal, Sembcorp, Visu Leasing or ICICI group of companies at any stage after joining Sebi.

The statement also highlighted that she did not deal with any files related to Wockhardt as its associate, which incidentally happened to be a lessee on a jointly owned property of Madhabi and Dhaval Buch. 

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Given the India-wide remit of Sebi’s responsibilities, the statement said the chairperson was usually not even aware of specific cases, as they are handled normally by other designated officials.

“For investigations, various powers are vested in senior officials such as chief general managers, executive directors, or whole-time members. Accordingly, no investigation files go to the chairperson,” the statement said.

Agora Advisory and Agora Partners

The statements issued by Mahindra Group (94% of the operating income of Agora Advisory, India), Pidilite (4% of the operating income of Agora Advisory, India), and Dr Reddy’s (2% of the operating income of Agora Advisory, India) emphasized that Dhaval Buch was associated with the respective companies for his professional expertise and merit, and this did not coincide with the time his wife was working in Sebi, Buch clarified.

“Questions about the motivations behind the decisions taken by these companies are unfortunate and defamatory not just for Dhaval, but for these respected companies as well”, the statement said.

A similar statement was issued by Alvarez & Marsal, which accounted for 100% of the operating income of the Singapore-based Agora Partners.

The Sebi chief claimed to have disclosed all requisite shareholdings in Agora companies in 2017.

Also Read | Sebi’s Madhabi Buch worked at ICICI Bank and a PE firm between 2011 and 2013