Wockhardt falls 5% after Congress alleges Sebi head of conflict of interest
Source: Business Standard
Mumbai: Securities and Exchange Board of India (SEBI) Chairperson Madhabi Puri Buch speaks during the ‘Annual Capital Markets Conference 2024’, in Mumbai, Friday, Aug. 2, 2024. (Photo: PTI)
Wockhardt share price ended 5 per cent lower at Rs 1,034.60 per share on the BSE on Friday. This came after the Congress party accused Securities and Exchange Board of India (Sebi) chairperson Madhabi Puri Buch of a conflict of interest involving the pharmaceutical firm Wockhardt.
The Congress alleged that Buch received rental income from an entity affiliated with a Mumbai-based pharma firm under investigation by Sebi for various cases, including insider trading.
Congress has accused Sebi chairperson Madhabi Puri Buch of a conflict of interest involving Wockhardt Ltd.
Congress spokesperson Pawan Khera, in a press conference today, said that Buch, who became a Whole Time Member of SEBI in 2018, rented out one of her properties to Carol Info Services Limited—a company affiliated with Wockhardt. The rent from this property increased significantly, from Rs 7 lakh in 2018-19 to Rs 46 lakh in the current year.
“Madhabi P. Buch received Rental Income from an entity affiliated with a company that Sebi was investigating for various cases including that of insider trading. Between 2018-2024, Ms. Madhabi P. Buch as a Whole Time Member and later as the Chairperson of SEBI had been receiving rental income amounting to Rs. 2.16 crores from ‘Carol Info Services Limited,” an official press release by the Congress party said.
Established in 1979, Carol Info Services Limited (CISL) is promoted by the Wockhardt group, based in Mumbai. The group is led by Dr Habil Khorakiwala, Chairman of the Wockhardt Group. CISL is 92 per cent owned by Khorakiwala Holdings and Investments Private Limited (KHIPL).
The Congress party claimed that Sebi has been handling multiple cases related to Wockhardt, including insider trading. He labelled the situation as “corruption,” questioning the ethical and legal correctness of Buch’s actions, noting that she has received over Rs 2.16 crore in rent from the company over a period of the past six years.
“This is an outright case of corruption that invokes conflict of interest violating Section 4, 7, & 8 of SEBI’s 2008 Code on Conflict of Interests for Members of Board,” the political party stated in its press release.
In support, Congress leader Jairam Ramesh criticised the collapse of transparency and integrity at Sebi, highlighting the need for better regulatory oversight.
Earlier this week, ICICI Bank had clarified that it had not paid any salary or granted any ESOPs to Buch after her retirement on October 31, 2013, contrary to the Congress’s allegations.
The bank confirmed that Buch received her compensation, including salary, retiral benefits, bonus, and ESOPs, in accordance with the bank’s policies. The ESOPs, according to the bank, had a vesting period extending up to 10 years from the date of allotment.
First Published: Sep 06 2024 | 4:28 PM IST
