SEBI equipped to handle conflict-of-interest issues, says FM Sitharaman – CNBC TV18

Finance Minister Nirmala Sitharaman told Parliament on Monday, December 16, that the Securities and Exchange Board of India (SEBI) has adequate mechanisms to address conflict-of-interest concerns.

She said SEBI’s board has implemented a Code on Conflict of Interests for its members, including the chairperson, to ensure that governance remains uncompromised and public confidence in the regulator is upheld.

“These mechanisms include a comprehensive disclosure framework and provisions for recusal to prevent any potential conflicts,” Sitharaman said, adding that SEBI’s systems are designed to handle such concerns effectively.

Sitharaman was responding to a question on allegations of conflict of interest against SEBI Chairperson Madhabi Puri Buch.

Sitharaman also clarified that the Committee on Public Accounts had recently considered a request to excuse Buch from appearing before it due to a sudden personal exigency.

The meeting was subsequently adjourned.

The allegations, raised by Congress earlier this year, accuse Buch of violating conflict-of-interest norms through investments in listed securities and foreign funds, including entities linked to China. Congress had claimed that these actions were in contravention of SEBI’s conflict-of-interest rules.

In response, Madhabi Puri Buch and her husband, Dhaval Buch, issued a strongly worded statement in September, calling the allegations “false, malicious, and defamatory.

The statement read, “In keeping with the highest standards of governance, Madhabi has never dealt with any file involving Agora Advisory, Agora Partners, or the business groups mentioned in these allegations since her appointment at SEBI.”

Addressing these allegations against the SEBI Chief, FM had earlier emphasised the importance of evaluating facts carefully.

Speaking at a media event in September, Sitharaman said, “I think a few of the allegations are being answered by the Buchs. They are putting out facts to contradict the allegations by Congress. I think the facts are to be taken on board. Madhabi Buch and her husband are putting out facts to contradict the allegations.”