New Delhi: ICICI Bank’s clarification on compensation paid to SEBI chair Madhabi Puri Buch, who earlier headed ICICI Securities, in 2017-18 was questioned by the Congress Party, with the party’s media and publicity chairman Pawan Khera issuing a series of questions on the clarification.
Non-uniform retiral benefits
The Congress party in a document stated that the retiral benefits issued to Buch were non-uniform when it came ot the frequency as well as the amount of these payouts. ICICI Bank paid retiral benefits worth Rs 5.03 crore to Buch in 2014-15 soon after retirement. No payments were made in 2015-16. The bank resumed payments to Buch in 2016-17 and these continued until 2021, according to the Congress Party’s press statement.
Here is our latest statement on the conflict of interest issue involving the SEBI Chairperson. It is a reply to the feeble defence mounted yesterday evening in response to the revelations yesterday morning. pic.twitter.com/MfsKJkfrTW
— Jairam Ramesh (@Jairam_Ramesh) September 3, 2024
Retirals higher than salary?
The Congress Party’s press statement questioned how Buch’s retiral benefits, equalling Rs 277 crore, could exceed her average salary of Rs 130 crore during her active job phase with ICICI.
Exercising ESOPs
On ICICI Bank’s clarification that former employees were allowed to cash their ESOPS up to 10 years after the shares had vested, the Congress Party cited a document uploaded by the bank on the US Securities Exchange Commission website in which the ESOP cashout period was capped at 3 months from voluntary termination.
The Congress Party questioned where this revised ESOP policy was posted by the bank. Further, it raised concerns related to conflict of interest since Buch was allowed to exercise ESOPs when ICICI Bank’s share price was trading substantially higher. The Congress also posed a question whether Buch’s ESOPs were part of the Employees’ ESOP Trust since this will be “prejudicial to the interests of other employees at ICICI”.
TDS on ESOPs
ICICI Bank paid the tax deducted at source (TDS) on behalf of Buch, according to the Congress’ press statement. The party asked whether this was common practice when it came to all ICICI Bank employees, terming it to be a clear non-compliance of the Income Tax Act.
The Congress Party brought out a follow up document to question the clarification issued by ICICI Bank regarding payouts to SEBI chair Madhabi Puri Buch. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
