“It has come to our attention that there are certain allegations pertaining to payment of rent by Carol Info Services Limited and its connection with certain orders passed by SEBI in relation to the Company. In this regard, we categorically deny these allegations and state that these allegations are completely baseless and misleading. The Company has acted and continues to act in compliance with all applicable laws,” the exchange filing said.
Congress leader Pawan Khera on Friday had accused Sebi chief Madhabi Puri Buch of conflict of interest with the pharma company.
Khera in a press conference held on Friday, accused Buch of corruption and insider trading. Khera alleged that Buch and her husband own a property in Mumbai, which was given on rent to a company called Carol Info Services Ltd, and is a part of Wockhardt Ltd., a firm that SEBI has been involved with in multiple cases.
Khera suggested this represents a clear conflict of interest and amounts to corruption.”The company is called Carol Info Services Ltd. This is a part of a company called Wockhardt Ltd, they have the same promoters. Wockhardt is a company on which SEBI is continuously giving orders and dealing with its cases,” said Khera in a press conference.Also read: Carlyle-backed Hexaware Tech files draft papers with Sebi for Rs 9,950 cr IPO
“Madhabi Puri Buch is the chairperson of the same organisation (SEBI) which has complaints against Wockhardt before it. There was a case of insider trading too, her organisation (SEBI) dealt with the insider trading case of Wockhardt too. This is a conflict of interest, I would call it corruption. This is not just conflict of interest, this is out and out corruption,” Khera added.
Congress has demanded an independent inquiry into the allegations raising concerns that the situation could undermine foreign investors’ confidence in India’s financial system.
The Congress further attacked Prime Minister Narendra Modi and Union Home Minister Amit Shah, saying that they were the ones who appointed Buch as the chairperson of the organisation. Khera questioned if Modi had an understanding with Buch that her businesses would not be touched by the government or SEBI.
Additionally, Khera stated that the Congress was worried about Indian stock markets and that crores of Indians trust the regulator.
The shares of Wockhardt Ltd closed 5% lower on Friday at Rs 1,034.60 on BSE.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)