The ICICI Bank has clarified that neither it nor its group companies have paid any salary or granted any Employee Stock Ownership Plans (ESOPs) to SEBI Chairperson Madhabi Puri Buch following her retirement, except for her retiral benefits. The lender made this statement in a filing to stock exchanges after the Congress party raised allegations of office-for-profit 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 bank said in its filing.
Buch opted for the ICICI Group superannuation, effective October 31, 2013. ICICI Bank explained that under its ESOP rules, the stock options vest over a few years from the date of allotment. "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," the bank added.
The lender further explained that according to income tax regulations, "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 Form 16 for employees and retired employees. ICICI Bank stated that it is obligated to deduct perquisite tax on this income, and the Form 16 also covers payments made towards retiral benefits for former employees.
"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 filing concluded.
Earlier in the day, the Congress party accused Madhabi Puri Buch of holding an office-for-profit, claiming she received payments from ICICI Bank and ICICI Prudential while serving as a full-time member and later Chairperson of SEBI.
During a press conference in New Delhi, Pawan Khera, Chairman of the Congress Media and Publicity Department, alleged that Buch received a total of Rs 16.80 crore between 2017-18 and 2023-24 from ICICI Bank, ICICI Prudential, ESOPs, and TDS on ESOPs. Khera further claimed that Buch drew these payments while also receiving a salary from SEBI as a full-time member and later as the regulator’s Chairperson.
"The person sitting at the top of the regulator is taking salaries from another entity," Khera alleged, calling it a "perfect case of office-for-profit." He questioned why Buch was still receiving payments from ICICI during her tenure at SEBI, asking, "What service she as the SEBI Chairperson provided the bank when she was part of SEBI?"
Madhabi Puri Buch, who served as a full-time member of SEBI from April 2017 to October 2021, was appointed as SEBI Chairperson on March 2, 2022. She has yet to respond to the Congress party's allegations.
