Congress: Buch traded in listed securities, invested in China-focused funds

NEW DELHI: Congress Saturday alleged that Sebi chairperson Madhabi Puri Buch was trading in "listed securities" during her tenure at the agency and had also invested in China-focused funds, lobbing fresh accusations at the market regulator and dismissing the clarifications issued by her and her husband a day before.

Congress spokesperson Pawan Khera, displaying tables of purported trading of Rs 37 crore by Puri Buch, said the trades took place between 2017-18 and 2022-23 while she was a member and subsequently chairperson of Sebi, which constituted a violation of Section 6 of the code on conflict of interest for members of the board.

He, however, did not disclose the nature of securities that were traded. Khera also alleged that between 2021 and 2024, Puri Buch invested in four overseas exchange-traded funds (ETF) - which are like mutual funds and can be traded on exchanges - including in Global X MSCI China Consumer (CHIQ) and Invesco China Technologies ETF.

Neither Sebi nor Puri Buch commented on the fresh accusations. While CHIQ seeks to invest in large-and mid-capital segments of the MSCI China Index classified in the Consumer Discretionary Sector, the second fund is based on the FTSE China Incl A 25% Technology Capped Index, according to information available on websites.

On Friday, the Sebi chief and her husband, Dhaval, had dismissed the earlier charges as "false, incorrect, malicious and motivated" and said that all disclosures had been made.

As a top regulatory official, Puri Buch and her family members are allowed to hold shares and units of mutual funds under Sebi's code of conduct but disclosures are required. Besides, the code does not put any restriction on investment in instruments regulated overseas.

Khera sought to invoke the China factor given the restrictions placed by govt on investments with the neighbour following border tension. "It is deeply concerning to learn that Ms Madhabi P Buch, the Sebi chairperson, has been investing in Chinese funds. When the Prime Minister of India can publicly give China a clean chit, it's hardly surprising that a key regulatory figure is engaging in investments linked to China," the Congress spokesperson said. He also questioned the overseas assets and sought to know when they were disclosed.

While the Sebi boss and her husband had disclosed on Friday that the former Unilever executive's consulting income was routed via two consulting firms - Agora Partners (Singapore entity) and Agora Advisory (Indian entity), Khera raised questions about Puri Buch's association with the overseas outfit. "Is it true that Ms Madhabi P Buch was actively involved in Agora Partners PTE (Singapore) as she was a signatory to the bank account?" he questioned.

Khera asked Puri Buch if she or her company has dealt with companies that figured in Panama Papers and Paradise Papers - a reference to exposes on tax evasion and laundering. "If she does not respond to our questions, then we will give the answers," he said.

He said Congress will give a detailed reply to the clarifications given by Puri Buch and her husband, which he dubbed as vague.

Asked if the party was contemplating legal action, Khera said Congress is waiting for action by the PM and finance minister, while a Trinamool Congress MP has already approached the Lokpal.

About Puri Buch's threat to initiate legal action against entities which have illegally obtained her and her husband's income tax returns to cull the information about investments, Khera said Congress has nothing to do with the returns and that it is only discharging its duty as a responsible opposition party of bringing to light questionable details about impropriety that are not known to people.

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