Wockhardt shares fall 5% as Congress accuses Sebi chief of conflict of interest, corruption
Wockhardt shares fell 5% to hit the day's low of Rs 1,034.55 on the NSE on Friday after Congress leader Pawan Khera accused Sebi chief Madhabi Puri Buch of a conflict of interest with the pharma company.
Khera in a press conference held today, 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.
«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, emphasizing that it is in the national interest to safeguard the integrity of India's stock markets. The party raised concerns that the situation could undermine foreign investors' confidence in India’s financial system.
