In a statement to the stock exchange, ICICI Bank said the bank or its group companies have “not paid any salary or given any ESOP” to Butch since his retirement from the bank, except for his retirement benefits.
Madhabi Puri Buch got salary from ICICI after joining SEBI
The Congress accused SEBI chairperson Madhavi Puri Buch of “keeping an office of profit in ICICI Bank” and earning Rs 16.80 crore between 2017 and 2024 after joining the market regulator full-time in 2017. However, in a letter to the stock exchange, ICICI Bank said the bank or its group companies have “not paid any salary or given any ESOP” to Butch since his retirement from the bank, except for his retirement benefits.
In a press conference, Congress media and publicity chief Pawan Khera claimed: “In short, the total amount received by the SEBI Chairperson from ICICI since joining SEBI in 2017 till date is Rs 16,80,22,143, which is 5.09 per cent of the income received from SEBI during the same period. Guna, amounting to Rs.3,30,28,246.”
“While people put their hopes in SEBI whose Chairperson is directly appointed by the Prime Minister of India, they seem to be cheating us all the time,” according to him.
Khera also revealed that “between 2017 and 2021, as a whole-time member of SEBI, the current SEBI chairperson received a salary of Rs 12,63,47,239 (12.63 crore) from ICICI Bank”.
Bank Denies
He claimed that this constituted “violation of Section 54 of the SEBI (Service of Employees) Regulations, 2001, and Section 54 of SEBI’s Code relating to Conflict of Interest of Board Members” (2008), both of which prohibit full-time employees of SEBI from any other organization. From taking advantage and engaging in activities involving the receipt of salary or fees”.
Khera said Buch received Rs 22.41 lakh in revenue from ICICI Prudential between 2017 and 2024 while serving as a full-time member of SEBI and then as its chairperson.
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“Between 2021 and 2023, the present SEBI Chairperson received ESOP from ICICI Bank totaling Rs 2,84,12,918. This is in violation of Section X of the ICICI Employees Stock Option Scheme 2000,” Khera said.
He said that between 2021 and 2023, Buch “had TDSO in the ESOP paid Rs 1.10 crore by ICICI Bank”.
“The amount of TDS mentioned above is charged on salary and hence violates the SEBI Code of Conduct. This is an example of income tax evasion as the benefit of TDS is a pre-requisite to the ESOP offered by ICICI Bank and is subject to tax. “The value of this tax evasion is Rs 50 lakhs. ,” Khera claimed.
Hours later, ICICI Bank sent a statement to stock exchanges denying the allegations. “Neither ICICI Bank nor its group companies paid any salary or ESOP to Ms. Madhavi Puri Buch after her retirement, other than her retirement benefits,” according to the report.
“It should be noted that he was elected for dismissal with effect from October 31, 2013. During his employment with the ICICI Group, he was compensated in the form of salary, retirement benefits, bonus and ESOP as per applicable regulations, according to the bank.
As per bank’s ESOP standards, ESOPs will vest over the next few years from the date of allotment According to the rules in effect at the time of its ESOP grant, employees, even retired employees, can exercise their ESOPs at any time up to ten years after vesting. As per the Income Tax Act, the difference between the stock price and the allotment price on the day of exercise is classified as ancillary income and is reported in Part B of Form 16 for employees including retired employees,” it said. “The bank must deduct. Perquisite tax on this income. Form-16 also includes payments made towards retirement benefits of ex-employees.”
A senior banker, who did not wish to be identified, told The Indian Express that a publicly traded bank cannot pay a former employee or controller.
“From what I heard, the SEBI chairperson received ESOPs from the bank while working there. Once the ESOPs vest and the employee exercises the right to buy and accumulate them as per the guidelines, the employee can sell them within a period. 10 years,” said the banker. “Since ESOPs are considered perquisites, they are subject to taxes, including the difference between the exercise price and the fair value of the shares at the time of vesting, as well as long-term capital gains at the time of sale. So, I believe the salary demand made by the Congress Party while working in the bank The ESOP benefit that he had earned was implied.”
He went on to inquire about the source of the material supplied by the Congress. “When they presented an Excel sheet, there was no mention of the source of the information and hence it raises questions about the validity of the allegations.”
Asked during the press conference about evidence to support his claim, Khera replied, “Let them challenge these facts first, and we will tell you when and where to provide evidence. This is just the beginning. I told you, and I repeat.” , this is only the tip of the iceberg.
The opposition also claimed that Buch, as “whole-time member and chairperson of SEBI” not only earned money from ICICI Bank but also prosecuted complaints against the bank and its affiliates.
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According to Khera, “This is a clear violation of the Code of Conduct (2008) on Conflict of Interest for Board Members.”
Khera questioned Prime Minister Narendra Modi as to “who is protecting the SEBI Chairperson and why” and whether the Appointments Committee of the Cabinet headed by the Prime Minister “went through this shocking information about the SEBI Chairperson or the ACC has completely outsourced it”. PMO”.
Congress president Mallikarjun Kharge, demanded the “immediate dismissal” of the SEBI chairman and a JPC probe into the “Adani Mega Scam”.
In an ex post, he addressed the Prime Minister: “You have appointed the first lateral entry chairperson of SEBI without any due diligence, this has left a black mark on its reputation and tarnished the integrity of the market regulator.”
“Since the Chairperson of SEBI was appointed by the Modi-Shah led committee, they cannot absolve themselves from the fresh revelations involving corruption allegations!”
