Congress Alleges Sebi Chief's 'Wockhardt' Link Over Conflict Of Interest

In a fresh set of accusations, Congress leader Pawan Khera alleged a conflict of interest involving Sebi Chairperson Madhabi Puri Buch over her links to Wockhardt , a pharmaceutical company under regulatory scrutiny by Sebi. During a press conference, Khera claimed that Buch, who has been Sebi’s Whole Time Member since 2018 and later became its Chairperson, had a financial connection with Carol Info Services, a subsidiary of Wockhardt.

Khera stated, “There is a company in Mumbai named Carol Info Services, owned by Madhabi Puri Buch and her husband. This company is linked to Wockhardt, whose promoters are facing Sebi actions, including an insider trading case. How can Sebi, under Buch’s leadership, deal with complaints against Wockhardt when she has financial ties with a company linked to it? This is not just a conflict of interest, this is outright corruption.”

These allegations come on the heels of earlier claims regarding Buch’s financial connections with ICICI Bank and Prudential. Khera also pointed out that Buch had rented out a property after joining Sebi as a Whole Time Member in 2018, earning Rs 7 lakh in rent in the 2018-19 financial year. By 2023, the rent from the same property had surged to Rs 46 lakh.

Wockhardt Shares Fall Following Allegations
Following Congress’ allegations, shares of Wockhardt Pharma experienced a decline of over 3 per cent on September 6. The company has been involved in various Sebi orders over the years, and the accusations of insider trading have put additional pressure on the pharmaceutical giant.

Khera emphasised the gravity of the situation, calling it a case of “out and out corruption” rather than a simple conflict of interest. “How can Sebi ensure fair regulation when its chairperson has financial links to companies under its own investigation?” Khera questioned.

Parliamentary Scrutiny Heightens
Meanwhile, KC Venugopal, Chief of Parliament's Public Accounts Committee, confirmed that several regulatory officials, including those from Sebi and TRAI, have been summoned for a performance review. While it remains unclear whether Madhabi Puri Buch will attend the review, the increased scrutiny raises further questions about her leadership and transparency at the regulatory body.

This latest development adds to the growing controversies surrounding Sebi’s chairperson, as calls for transparency and accountability intensify across political and regulatory circles.