Following allegations from the Congress party, ICICI Bank clarified on Monday that neither it nor its group companies have paid any salary or granted Employee Stock Ownership Plans (ESOPs) to SEBI chief Madhabi Puri Buch after her retirement, apart from her retirement benefits.
“During her tenure with the ICICI Group, she received compensation in the form of salary, retirement benefits, bonuses, and ESOPs, in accordance with applicable policies,” the bank stated.
The bank also noted that under the rules in effect at the time of her ESOP grant, employees, including retirees, had the option to exercise their ESOPs at any time up to 10 years from the vesting date.
“According to Income Tax rules, the difference between the market price of the stock on the exercise date and the allotment price is considered perquisite income and is reported in Part B of the Form 16 of employees, including retired employees. The Bank is required to deduct perquisite tax on this income. Additionally, Form 16 includes the payments made towards the retirement benefits of former employees,” the statement further added.
On Monday, the Congress party accused Buch of holding an office of profit at ICICI Bank and receiving ₹16.8 crore in substantial benefits from the bank and its subsidiaries.
At a press conference in Delhi, Congress leader Pawan Khera claimed that between 2017 and 2024, Buch received ₹12.63 crore from ICICI Bank, ₹22.41 lakh from ICICI Prudential, ₹2.84 crore from ESOPs, and ₹1.10 crore in Tax Deducted at Source (TDS) payments from ICICI, in addition to her SEBI salary, which totaled ₹3.3 crore.
Khera questioned the ethics of a regulatory authority’s head receiving income from an entity it regulates, stating, “Anyone with a little shame would not wait to resign after this exposure.”
Madhabi Puri Buch opted for superannuation from the ICICI Group, effective October 31, 2013. Recently, U.S.-based short-seller Hindenburg Research alleged a conflict of interest involving Buch and Blackstone, as her husband Dhaval Buch was appointed as an advisor to the global asset management company—a significant investor in Real Estate Investment Trusts (REITs).
However, SEBI dismissed Hindenburg’s claims, stating that it has consistently emphasized the role of REITs, SME REITs, InvITs, Municipal Bonds, and other instruments to advance the Indian securities market.
