ICICI Bank or its group companies have not paid any salary or granted any employee stock ownership plan (ESOPs) to SEBI Chairperson Madhabi Puri Buch after her retirement, other than her retiral benefits, the lender informed stock exchanges in a filing, hours after the Congress party labeled office-for-profit charge against Buch.
“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,” the ICICI Bank exchange filing read.
Buch had opted for superannuation from the Group with effect from October 31, 2013.
ICICI issues statement – It has come to our attention that there are certain reports in media alleging payment of salary by ICICI Group to Madhabi Puri Buch, Chairperson, SEBI. In this connection, we would like to clarify as follows: “ICICI Bank or its group companies have not… https://t.co/Hrw8hRuSuo pic.twitter.com/YJTghSH59H
— ANI (@ANI) September 2, 2024
Under the bank’s ESOP rules, the ESOPs vest over the next few years from the date of allotment, the lender asserted in the filing. “As per rules existing at the time of her ESOP grant, employees including retired employees had the choice to exercise their ESOPs anytime up to a period of 10 years from the date of vesting.”
“As per Income Tax rules, the difference between the price of the stock on the day of exercise and the allotment price is treated as perquisite income and is reflected in Part B of the Form16 of employees, including retired employees. The Bank is required to deduct the perquisite tax on this income. In addition, Form -16 covers the payment made towards the retiral benefits of former employees,” the exchange filing added.
All the payments made to Buch post her retirement had accrued to her during her employment phase with the ICICI Group. Those payments comprised ESOPs and retiral benefits, the lender’s exchange filing concludes.
Earlier, the Congress party had labeled allegations against SEBI Chairperson Madhabi Puri Buch. The Congress party accused her of office for profit.
In a press conference in New Delhi on September 2, Pawan Khera, Chairman, Media and Publicity Department, Congress, charged Buch of receiving regular income from private lender ICICI Bank and arm ICICI Prudential, while being the whole-time member and later Chairperson of the capital markets regulatory body.
The congress spokesperson alleged that Buch received a total of Rs 16.80 crore between 2017-18 to 2023-24, from ICICI Bank, ICICI Prudential, ESOPs, and TDS on ESOPs. The Congress further alleged that during this period, Buch also drew a salary from SEBI as a whole-time member and later as the Chairperson.
“The person sitting at the top of the regulator is taking salaries from another entity,” Khera alleged, adding it was a perfect case of “office for profit”.
“So we want to know why you were taking your salary from ICICI despite being a full-time member of SEBI?,” Khera asked what service she as the SEBI Chairperson provided the bank when she was part of SEBI.
The SEBI Chief is yet to react to the charges made by the Congress in Monday’s news conference. Madhabi Puri Buch was a whole-time member of SEBI from April 5, 2017, to October 4, 2021. Then on March 2, 2022, Madhabi Puri Buch became the Chairperson of SEBI.
(with inputs from ANI)
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