SEBI Chairperson under Fire: Congress Reply to Clarification by ICICI bank
Moneylife Digital Team 03 September 2024
In a rapidly evolving controversy, the Congress Party fired a fresh salvo against Madhabi Puri Buch, the chairperson of the Securities and Exchange Board of India (SEBI) today over ICICI's ESOP (employee stock options plan) policy, which it said was only uploaded on the US (Edgar website) and not in India. That policy allows former employees to exercise ESOPs within three months of voluntary termination. 
 
Addressing a second press conference, Congress spokesperson Pawan Khera raised questions about ICICI Bank’s filing, reiterating allegations   of financial impropriety, conflicts of interest, and questions about regulatory integrity. Specifically, the Party alleged that she had continued to receive a salary and ESOP benefits from ICICI Bank during her tenure at SEBI. We have covered it in detail here.
 
ICICI Bank clarified that the income reflected Ms Buch’s retirement benefits accrued during her employment phase with the ICICI group and are in line with applicable policies and tax regulations. Mr Khera, however, points to the fact that retirment benefits, or what he now calls pension is strangely higher than her last drawn salary. There is also no clarity about ESOPs and their encashment. The Congress put out a table of her earnings, posted below. 
 
 
Here is the list of questions raised by the Congress press release: 
 
 
 
Disproportionate Payments: They pointed out that the average 'retiral benefit' paid from 2016-17 to 2020-21 (around Rs2.77 crore per annum) was significantly higher than her average salary as an employee (Rs1.30 crore per annum from 2007 to 2013-14).
 
Comments
gomessb
1 week ago
Regulatory authorities are like the movies, Alistair McLeans' Puppet on a Chain, or the raid on bootlegging run by the Attorney General during the days of prohibition in the USA. Too many I's in ICICI.
sudheer.vaidya
Replied to gomessb comment 7 days ago
Whoa, memories... Alistair Maclean... True that. Aye, too many 'I's in ICICI!
parimalshah1
1 week ago
ICICI bank seems to be a kingpin for various rule bending bordering to violation. First it was Chanda Kocher, Then ICICI demerger and now MBP. What gives. Hon. FM, please put this bank's house in order or get its license cancelled.
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