Wockhardt stock plunges 5% following Congress’ allegations of corruption against SEBI chief Madhabi Buch

Shares of Wockhardt Pharma Ltd dropped by more than 5 per cent on , following allegations by Congress that Securities and Exchange Board of India (SEBI) chairperson Madhabi Puri Buch had a conflict of interest with the pharmaceutical company.

During a press conference today, Khera accused Buch of corruption and insider trading. He claimed that Buch and her husband own a property in Mumbai, which has been rented to Carol Info Services Ltd, a company affiliated with Wockhardt Ltd. Khera further noted that SEBI has been involved in multiple cases with the firm.

Khera indicated that this clearly constitutes a conflict of interest and can be considered an act of 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.

Here's what Congress says

Congress has called for an independent investigation into the allegations, stressing the importance of protecting the integrity of India's stock markets in the national interest. The party expressed concerns that the situation could erode foreign investors' confidence in the country's financial system. Congress emphasized that SEBI, as the regulatory body, must remain beyond any suspicion of misconduct to uphold the trust of millions of investors.

"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.

Additionally, the Congress criticized Prime Minister Narendra Modi and Union Home Minister Amit Shah, accusing them of appointing Buch as the chairperson of the organization. Khera raised concerns, asking whether Modi had made an agreement with Buch to ensure her businesses would remain unaffected by the government or SEBI.

He added that this was just the first door to be opened, and many more doors would open, revealing even more.

Khera also expressed concern about the Indian stock markets, emphasizing that millions of Indians place their trust in the regulator.

This statement follows the Congress party's demand for an independent investigation into the allegations against Buch. The party argued that such a probe was in the national interest, as foreign investors were becoming apprehensive and doubts were being raised about the integrity of India's stock markets.