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Sebi's Madhabi Buch worked at ICICI and a PE firm between 2011 and 2013
Summary
- Buch served as a whole-time member of Sebi between 2017 and 2021, before taking over as chairperson in March 2022
Bengaluru: Securities and Exchange Board of India chairperson Madhabi Puri Buch’s third and shortest stint at ICICI Bank Ltd between 2011 and 2013 appears to have coincided with a full-time job at Greater Pacific Capital, a revelation that raises questions about how she could have worked with two financial services firms at the same time.
Buch, who stepped down as chief executive of ICICI Securities Ltd in April 2011, is understood to have returned to ICICI Bank and continued to have worked until October 2013, according to an executive familiar with the developments at the bank. This is corroborated by ICICI Bank’s response to stock exchanges on 2 September, when it disclosed that Buch retired from ICICI Group on 31 October 2013.
However, Buch’s profile on professional networking platform LinkedIn states she worked with Greater Pacific Capital, a Singapore-headquartered private equity firm, as head of business developments between 2011 and 2013.
A press release by Sebi when Buch was appointed a whole-time member in 2017 mentions her stint with the private equity firm.
“Ms. Buch also served as the head of the Singapore office of the private equity firm, Greater Pacific Capital. She also served as the managing director and chief executive officer at ICICI Securities Ltd and as executive director, on the board of ICICI Bank," said a Sebi press release dated 5 April, 2017.
Also Read: Mint Explainer: Sebi’s Madhabi Puri Buch and the fuss over her ICICI payouts
Buch served as a whole-time member of Sebi between 2017 and 2021, before taking over as chairperson in March 2022.
Incidentally, Buch returned from the bank's brokerage arm when Chanda Kochhar was at the helm at ICICI Bank.
“Ms Buch was with the bank until October 2013. This can be seen from the bank’s formal release sent to the exchanges," said an ICICI Bank executive. “But I’m not aware of her role or designation."
Also read: ‘How can retirement benefits exceed salary from ICICI?’ — Congress fires fresh ammo at SEBI chief Madhabi Puri Buch
Emails sent to Sebi, Greater Pacific Capital’s chief executive Ketan Patel and ICICI Bank seeking comment went unanswered.
Buch's academic background
Buch, a mathematical economics graduate with a post-graduate degree in management from the Indian Institute of Management-Ahmedabad, was the only woman from the class of 1988 to have pulled out of placements, according to the management school’s archives.
Buch started her career as a social worker for Professional Assistance for Development Action for Grass Root Cooperatives from 1988 to 1989. She joined ICICI Bank in 1989 as a financial analyst and left the bank in 1992 to work as a lecturer at West Cheshire College in the UK between 1993 and 1995. After short stints at ANZ Grindlays Bank and ORG MARG Research, she returned to ICICI Bank in January 1997 and continued there till 31 January, 2009. She served as CEO of ICICI Securities between February 2009 and 30 April 2011.
Also read: Didn’t pay salary or granted ESOPs post-retirement to Sebi’s Madhabi Puri Buch: ICICI Bank amid Congress’ allegations
“From a governance standpoint, all three - ICICI Bank, Greater Pacific Capital and Ms. Buch need to explain what was the role of Ms. Buch at ICICI Bank between 2011 and 2013 and what were the circumstances that made the bank and her other employer, Greater Pacific Capital, agree that she could work at both places," said a corporate governance expert on the condition of anonymity. “As the head of the Singapore office of Greater Pacific Capital, she would not have managed to come to ICICI Bank’s office. So, was she getting paid by ICICI Bank during those two years?"
Buch’s current three-year tenure at Sebi came under the spotlight when the US short-seller Hindenburg posted a note on its website on 10 August claiming that Buch and her husband, Dhaval, held shares in an offshore fund, which in turn had seen investments from another offshore fund, that is alleged to have been used by Vinod Adani, elder brother of billionaire Gautam Adani, as a vehicle to manipulate Adani Group firms' share prices. “We do not think Sebi can be trusted as an objective arbiter in the Adani matter," Hindenburg alleged, even as Buch and Adani denied all the allegations.
Buch owns 99% of the shares in Agora Advisory Pvt. Ltd, a Mumbai-based consultancy firm, although she stepped down as a director before joining as a whole-time member of Sebi. Details of Agora’s clients and the services it offers are not available.
Earlier this week, Zee Entertainment founder and chairman emeritus Subhash Chandra accused Buch of scuttling the company's proposed $10 billion merger with Sony Pictures Networks India. Chandra did not offer proof of his allegations but has threatened to sue Buch.
Separately, Congress leader Pawan Khera has questioned why ICICI Group paid ₹16.80 crore to Buch after she left the bank and joined Sebi.
