The Congress on Thursday demanded an independent inquiry into the allegations against Securities and Exchange Board of India chairperson Madhabi Puri Buch, saying that “lots of skeletons” were tumbling out of the cupboard of the markets regulator.

At a press conference, Praveen Chakravarty, a former investment banker and chairman of the Congress professionals’ wing and data analytics department, questioned the government’s “hesitation to conduct an impartial, objective inquiry” against Buch.

The Congress’ demand comes amid several allegations of misconduct against Buch, including that she received more money as a pension after retiring from ICICI Bank than the salary she drew while working there. Buch retired from ICICI Bank in October 2013. She had joined the bank in 2007.

The claims about the pension, which were made by the Congress on Tuesday, came a day after ICICI Bank denied paying a salary or granting Employee Stock Ownership Plan benefits to Buch after she retired from the company.

An Employee Stock Ownership Plan gives employees of a company an ownership stake in the form of equity shares.

The bank was responding to allegations made by the Congress on Monday that Buch drew an income of Rs 16.8 crore from the ICICI Bank between 2017 and 2024.

The Opposition party alleged that this presented a conflict of interest as Buch had joined the Securities and Exchange Board of India as a whole-time director in April 2017. She became its chairperson in March 2022.

On Thursday, Chakravarty said: “As a former financial professional myself, I have received several calls from foreign investors asking, ‘What is the status of the market regulator? Can we trust India’s securities market?’”

He added: “The real question is who is being protected here? Why is the ED [Enforcement Directorate] silent on Madhabi Puri Buch?”

The Congress’ claims against Buch come against the backdrop of allegations made by United States-based firm Hindenburg Research on August 10. The firm said that Buch and her husband Dhaval Buch had “hidden stakes” in offshore entities tied to stock price manipulation and money laundering by the Adani Group.

Two days after the allegations came to light, the Congress demanded a Joint Parliamentary Committee to investigate the full scope of the “Adani MegaScam”.

On Thursday, Chakravarty, while referring to the allegations brought up by Hindenburg Research, said that the charges were levelled against Buch by a “research firm, not by any political party”.

However, a Cabinet minister belonging to the Prime Minister Narendra Modi-led government addressed the issue, he said. “Why did they respond to the allegation made by a foreign research firm against an individual at SEBI?” he asked. Chakravarty did not clarify which minister he was referring to.

Referring to the allegations against Buch and ICICI Bank, he added: “SEBI chairperson Madhabi Puri Buch is not responding. But ICICI is. Why?”

The Congress leader also referred to news reports that nearly 500 SEBI officers had written a letter to the Union government on August 6 about the “toxic, abusive and fearful” work environment under Buch’s leadership at SEBI.

After the letter came to light, the markets regulator issued a press release on Wednesday claiming that the officers were “misguided by external elements to target credibility of SEBI and its leadership”.

Earlier on Thursday, nearly 200 SEBI officers conducted a “silent protest” demanding a withdrawal of the statement and Buch’s resignation, Moneycontrol reported.

Chakravarty on Thursday also noted another news report that Buch was employed at Greater Pacific Capital during her tenure at the ICICI Bank.

According to the Congress leader, Greater Pacific Capital was a private equity fund where Shaurya Doval, son of National Security Adviser Ajit Doval, was part of the leadership team.

“Buch may have been recruited as a finance professional, but this raises a long list of allegations and questions,” he said. “Doesn’t it raise more concern?”

“This is a national issue,” Chakravarty added. “If foreign investors are getting concerned and there are doubts about the integrity of India’s stock markets because of a series of allegations against the chairperson of the market regulator, is it not in the national interest to conduct an inquiry to get to the root of this matter and resolve it?”

Also read: Madhabi Buch exercised ICICI Bank stock options to get shares worth Rs 10.3 crore after joining SEBI