ICICI Bank and Sebi Under Spotlight as Adani Group Faces Scrutiny

Mumbai: The Securities and Exchange Board of India (Sebi) is set to hold a crucial board meeting today, following allegations of conflict of interest against its chairperson, Madhabi Puri Buch, raised by US-based Hindenburg Research and India's Congress party.

The board is expected to address accusations and concerns stemming from a withdrawn press release regarding employee issues, even though these topics aren't listed on the official agenda.

In the gap between the last board meeting and today’s gathering, significant developments concerning the institution have emerged, with Sebi employees lodging complaints about a reported toxic work culture. Initially attributing the unrest to external factors, Sebi later retracted this statement in response to staff protests.

Hindenburg accused Buch and her husband of having invested in offshore funds linked to Vinod Adani, brother of Gautam Adani, suggesting misuse of funds to inflate stock prices of Adani Group's listed companies. Furthermore, it was alleged that Sebi's amendments to rules regarding real estate investment trusts (REITs) favored Blackstone, where Buch's spouse is a senior advisor.

The Congress party has accused Buch of trading in listed securities and breaching conflict of interest policies by selling employee stock options from her previous employment at ICICI Bank. Both Buch and Sebi have refuted these claims, yet the board remains silent on the matter.

The board includes eight members, such as Buch, four full-time Sebi members, and three part-time nominations from the Finance Ministry, Corporate Affairs Ministry, and the Reserve Bank of India. This meeting marks the first for new corporate affairs secretary Deepti Gaur Mukerjee and the last for deputy RBI governor M Rajeshwar Rao, who retires soon.