ICICI Bank Clarifies Payments to SEBI Chairperson Madhabi Puri Buch Amid Congress Allegations
ICICI Bank has stated that SEBI Chairperson Madhabi Puri Buch did not receive any salary or employee stock ownership plans (ESOPs) after her retirement, except for her retiral benefits. This clarification came after the Congress party accused Buch of holding an office-for-profit.
ICICI Bank’s Statement
In a filing to stock exchanges, ICICI Bank explained that during her employment, Buch received compensation including salary, retiral benefits, bonus, and ESOPs, in accordance with the bank’s policies. Buch retired from the ICICI Group on October 31, 2013. The bank’s ESOP rules allow employees, including retired ones, to exercise their ESOPs up to 10 years from the date of vesting.
The bank also clarified that, as per Income Tax rules, the difference between the stock price on the day of exercise and the allotment price is considered perquisite income and is reflected in Part B of Form 16. The bank is required to deduct perquisite tax on this income. All payments made to Buch post-retirement were accrued during her employment phase and included ESOPs and retiral benefits.
Congress Party’s Allegations
Earlier, the Congress party accused Buch of receiving regular income from ICICI Bank and ICICI Prudential while serving as a whole-time member and later Chairperson of SEBI. Congress spokesperson Pawan Khera alleged that Buch received Rs 16.80 crore between 2017-18 and 2023-24 from ICICI Bank, ICICI Prudential, ESOPs, and TDS on ESOPs. Khera questioned why Buch was taking a salary from ICICI while being a full-time member of SEBI.
Madhabi Puri Buch has not yet responded to these allegations. She served as a whole-time member of SEBI from April 5, 2017, to October 4, 2021, and became the Chairperson of SEBI on March 2, 2022.
Doubts Revealed
ICICI Bank -: ICICI Bank is one of the largest private sector banks in India. It provides various financial services like loans, savings accounts, and credit cards.
SEBI -: SEBI stands for Securities and Exchange Board of India. It is a government agency that regulates the stock market and protects investors.
Chairperson -: A chairperson is the leader or head of an organization or committee. In this case, Madhabi Puri Buch is the head of SEBI.
Madhabi Puri Buch -: Madhabi Puri Buch is the current chairperson of SEBI. She is responsible for overseeing the stock market and protecting investors.
Congress -: Congress is a major political party in India. It often raises questions and concerns about government and public matters.
ESOPs -: ESOPs stand for Employee Stock Ownership Plans. These are shares given to employees as part of their salary or benefits.
Retiral benefits -: Retiral benefits are payments or benefits given to employees after they retire from their job. This can include pensions or other financial support.
Office-for-profit -: Office-for-profit means holding a position where one can earn money or benefits. Congress is accusing Buch of earning money while serving in a government role.
ICICI Prudential -: ICICI Prudential is a life insurance company in India. It is a joint venture between ICICI Bank and Prudential Corporation Holdings Limited.
Accrued -: Accrued means accumulated or gathered over time. ICICI Bank says the payments to Buch were gathered during her time working there.
