ICICI Bank clarifies, hasn't paid any salary or stocks to SEBI Chief Madhabi Buch

ICICI Bank on Buch: ICICI Bank, one of India's leading private sector banks, has officially denied allegations that it continued to pay a salary or granted employee stock options to Madhabi Puri Buch, the current chief of the Securities and Exchange Board of India (SEBI), after her retirement as the CEO of ICICI Securities.

“ICICI Bank or its group companies have not paid any salary or granted any ESOPs to Madhabi Puri Buch after her retirement, other than her retiral benefits. It may be noted that she had opted for superannuation with effect from October 31, 2013. During her employment with the ICICI Group, she received compensation in the form of salary, retiral benefits, bonus and ESOPs, in line with applicable policies...All the payments made to Ms. Buch post her retirement had accrued to her during her employment phase with the ICICI Group. These payments comprise ESOPs and retiral benefits,” the bank said in a statement.

The bank's statement is in response to allegations by the Congress party that Buch, who joined the market regulator as a full-time member, continued to get financial compensation from ICICI Bank. The opposition claimed it would be a possible breach of regulatory rules and a moral hazard that raises questions over the integrity of the relationship between Buch and the bank.

ICICI Bank clarified that Buch, after an illustrious career at the bank, retired without receiving any salary or ESOPs thereafter. The bank said Buch's professional and financial association with ICICI Bank actually ended on retirement in full compliance with legal and regulatory provisions.

Buch's stint with ICICI Bank started in 1989, and between February 2009 and May 2011, she served as the CEO of ICICI Securities. In April 2017, Buch joined SEBI as a whole-time member before she assumed the role of SEBI Chairperson from March 2022.

Madhabi Puri Buch, an IAS officer, has played a very key role since then in the regulation of Indian markets and also in introducing some key regulatory reforms. Having a long background in banking and finance, her stint at SEBI was followed closely.