Wockhardt Denies Link with SEBI Chairperson Madhabi Puri Buch Amid Allegations by Congress
Wockhardt, a prominent pharmaceutical company, has been at the center of controversy due to allegations made by the Indian National Congress party. Here’s what you need to know:
- Madhabi Puri Buch: Madhabi Puri Buch is the chairperson of the Securities and Exchange Board of India (SEBI), the regulatory body overseeing India’s stock markets and financial securities.
- Carol Info Services: An affiliate of Wockhardt, Carol Info Services, allegedly made rental payments to Buch.
The Allegations
The Congress party claimed that between 2018 and 2024, Buch received rental income of ₹2.16 crore from Carol Info Services, reports Money Control.
Additionally, Carol Info Services is reportedly under investigation by SEBI for various cases, including insider trading during 2023, reports Moneylife.
Wockhardt’s Response
Wockhardt categorically denies these allegations, stating that they are “completely baseless and misleading.” The company emphasizes that it has consistently acted in compliance with all applicable laws, reports Telegraph India.
The accusations led to a 5% decline in Wockhardt’s share price on the Bombay Stock Exchange (BSE).
Conflict of Interest Claims
- The Congress party further alleged that Buch’s rental income constituted a conflict of interest.
- They cited sections 4, 7, and 8 of SEBI’s 2008 code on conflict of interests for board members.
- Previous SEBI chairpersons had taken care to avoid even the appearance of such conflicts.
Additional Claims
- The Congress also raised concerns about Buch’s previous association with ICICI Bank.
- They claimed that she drew a salary and other compensation from the private sector bank while serving as a whole-time member of SEBI.
- ICICI Bank responded, clarifying that they had not paid any salary or granted ESOPs to Buch after her retirement in 2013.
Buch’s Silence
As of now, SEBI chairperson Madhabi Puri Buch has not publicly responded to these allegations.
Remember, this situation highlights the importance of transparency, ethical conduct, and avoiding conflicts of interest in regulatory bodies.
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