Recently, Congress Leader Pawan Khera conducted a press conference in Delhi and raise various questions on SEBI. He said that SEBI Chief Madhabi Puri Buch had received Rs 16.8 crore from ICICI Bank and its affiliates since she joined SEBI in 2017. He said that this amount significantly exceeded her reported earnings from SEBI, which totaled Rs 3.3 crore during the same period. He said that Buch’s continued income from ICICI Bank and its affiliates while serving as SEBI Chairperson violated regulatory rules. He argued that it was inappropriate for someone in a high regulatory position to receive payments from other entities. Watch his video below 👇
#WATCH | Congress leader Pawan Khera says "The role of SEBI is to regulate the share market where we all invest our money. It has a very important role to play. Who appoints the chairperson of SEBI? This is the Appointments Committee of the Cabinet, Prime Minister and Union HM… pic.twitter.com/aEYLPLe7gL
— ANI (@ANI) September 2, 2024
Now, ICICI Bank has firmly dismissed the allegations against Madhabi Puri Buch, the current chairperson of the Securities and Exchange Board of India (SEBI). The bank has clarified that Buch has not received any such payments or benefits post her retirement from ICICI Bank. In a detailed statement, ICICI Bank clarified that Buch, who retired from the ICICI Group on October 31, 2013, has only received retiral benefits after her retirement. The bank further explained that Buch had received compensation during her time with ICICI in the form of salary, bonuses, and ESOPs, which were in line with the bank’s policies at the time.
“ICICI Bank or its group companies have not paid any salary or granted any ESOPs to Ms. Madhabi Puri Buch after her retirement,” the bank said.
Understanding the ESOPs and Tax Implications
The bank elaborated that under ICICI’s ESOP rules, stock options vest over several years from the date they are allotted. Employees, including those retired, could exercise their options up to 10 years from the vesting date. According to tax regulations, the difference between the stock’s exercise price and its market price is considered as perquisite income and is taxed accordingly. This income is included in the Form 16, which covers both salary and retiral benefits.
Recent Controversies and Background
The allegations come amidst other controversies, including claims from short-seller Hindenburg Research that Buch and her husband held stakes in offshore entities linked to the Adani Group. Before becoming SEBI Chairperson in March 2022, Buch served as a whole-time member of SEBI from April 2017 to October 2021. Her career with ICICI Bank began in 1989, and she was the CEO of ICICI Securities from February 2009 to May 2011. ICICI Bank is also involved in another controversy related to ICICI Securities. Read this controversy here.
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