Tag: ICICI Bank

New Delhi: The cases where SEBI chairperson Madhabi Puri Buch recused herself due to potential conflict of interest is not “readily” available and collating them would “disproportionately divert” its resources, the securities market regulator said in an RTI response on Friday.

What Did Sebi Say In RTI Response?

In the response furnished to transparency activist Commodore Lokesh Batra (retd), the regulator also refused to provide copies of Buch’s declarations to the government and SEBI Board on the financial assets and equities held by her and her family members on the grounds of these being “personal information” and that their disclosure may “endanger” personal safety. (Also Read: Congress’ Fresh Salvo At Buch)

It also denied to disclose the dates on which the disclosures were made. The SEBI Central Public Information Officer (CPIO) used the grounds of “personal information” and “safety” to deny copy of those declarations.

“Since the information sought do not pertain to you and the same relates to personal information, the disclosure of which has no relationship to any public activity or interest and mat cause unwarranted invasion into the privacy of the individual and may also endanger the life or physical safety of the person(s). The same is, therefore exempt in terms of Section 8(1)(g) and 8(1)(j) of the RTI Act, 2005,” the RTI response said.

“Further the information on cases where Madhabi Puri Buch recused herself due to potential conflicts of interest during her tenure is not readily available and collating the same will lead to disproportionately diverting the resources of the public authority in terms of Section 7(9) of the RTI Act,” it said.

Section 8(1)(g) allows a public authority to withhold information the disclosure of which would endanger the life and physical safety of any person and section 8(1)(j) allows withholding information which relates to personal information the disclosure of which has no relationship to any public activity or interest.

A CPIO may still disclose information if public interest in disclosure outweighs the harm to the protected interests.

A press release from SEBI on August 11 had claimed that the chairperson has recused herself in matters involving potential conflict of interest.

“It is noted that relevant disclosures required in terms of holdings of securities and their transfers have been made by the Chairperson from time to time,” it had said.

The US-based short seller Hindenburg Research alleged that it suspects SEBI’s unwillingness to act against the Adani group may be because Buch had stakes in offshore funds linked to the conglomerate.

The short seller had alleged that Buch and her husband Dhaval had invested in one of the funds which was allegedly being used by Vinod Adani. It also flagged Dhaval’s association with private equity major Blackstone, a promoter of multiple real estate investment trusts (REITs) and Sebi’s continued pitch for the new investment avenue.

“The allegations made by Hindenburg Research, against the Adani Group, have been duly investigated by Sebi,” the capital markets regulator had said in the statement.

The Supreme Court had itself noted in an order in January that 24 out of 26 investigations against Adani had been completed, it said, adding that one more was completed in March and the last is nearing completion now.

Ahmedabad: The Adani Group on Thursday unequivocally rejected and denied baseless allegations regarding claims by US short-seller Hindenburg Research that Swiss authorities have frozen its funds.

 Dismissing the latest allegations, an Adani Group spokesperson denied the baseless claims.

“We unequivocally reject and deny the baseless allegations presented. The Adani Group has no involvement in any Swiss court proceedings, nor have any of our company accounts been subject to sequestration by any authority,” said the company spokesperson.

“Furthermore, even in the alleged order, the Swiss court has neither mentioned our group companies, nor have we received any requests for clarification or information from any such authority or regulatory body. We reiterate that our overseas holding structure is transparent, fully disclosed, and compliant with all relevant laws,” the spokesperson added.

The spokesperson further said that these allegations are “clearly preposterous, irrational, and absurd”.

“We have no hesitation in stating that this is yet another orchestrated and egregious attempt by the same cohorts acting in unison to inflict irreversible damage on our group’s reputation and market value,” said the spokesperson.

The Adani Group remains “steadfastly committed to transparency and compliance with all legal and regulatory requirements”, the spokesperson noted.

Last month, industry experts had slammed earlier Hindenburg allegations as not merely frivolous but cheap antics, saying the US short-seller has nothing substantial to talk about even 18 months later.

New Delhi: The opposition Congress on Tuesday launched fresh tirade against Sebi Chairperson Madhabi Puri Buch over receiving regular income from private lender ICICI Bank and arm ICICI Prudential, while being the whole-time member and later Chairperson of the capital markets regulatory body.

Pawan Khera, Chairman, Media and Publicity Department, Congress, in a press conference said, “We asked three questions yesterday (which was directed towards ICICI bank, PN and Buch. Of the three, ICICI bank responded to our allegations, which has infact helped us in un-layering this expose further.” (Also Read: Trouble Mounts For Madhabi Puri Buch)

Khera further claimed that ICICI bank paid pensions to Buch which varied in various years and was not steady. He added that Buch availed ESOPs from ICICI even after superannuation from the Group. He questioned as to how retirement benefits or pensions be more than the annual average salary that Buch drew from ICICI.

Khera also raised questions on the TDS being paid by ICICI Bank on ESOPs to Buch. (Also read: Buch Responsible For ZEEL-Sony Deal Failure)

“Why did ICICI pay the TDS on ESOPs on behalf of Buch? Does the bank follow the same protocol for all its past and present employees? Why didi ICICI not offer this TDS amount as taxable income of Buch? Is this not a clear non-compliance of the Income Tax Act?,” questioned Khera.

Read Congress’ Latest Expose On Madhabi Puri Buch And ICICI Bank Via This Tweet Thread
 

Statement by Shri Pawan Khera, Chairman, Media & Publicity (Communication Deptt), AICC. pic.twitter.com/E3S96g3Zoy
— INC Sandesh (@INCSandesh) September 3, 2024

Response Of ICICI Bank On Congress’ Allegations 

ICICI Bank in a stock exchanges in a filing, hours after the Congress party labeled office-for-profit charge against Buch yesterday said that the bank or its group of companies have not paid any salary or granted any employee stock ownership plan (ESOPs) to SEBI Chairperson Madhabi Puri Buch after her retirement, other than her retiral benefits.

“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 ICICI Bank exchange filing read.

Buch had opted for superannuation from the Group with effect from October 31, 2013. Under the bank’s ESOP rules, the ESOPs vest over the next few years from the date of allotment, the lender asserted in the filing. “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.”

“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 Form16 of employees, including retired employees. 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,” the exchange filing added.

All the payments made to Buch post her retirement had accrued to her during her employment phase with the ICICI Group.

Those payments comprised ESOPs and retiral benefits, the lender’s exchange filing concludes.

With ANI Inputs