ICICI Bank on Monday vehemently refuted the allegations levelled by the Congress about the private lender paying remuneration in the form of salary or employee stock option plans (ESOPs) to SEBI Chairperson Madhabi Puri Buch.
Madhabi Puri Buch SEBI Chief_(Photo:IANS)
ICICI Bank on Monday vehemently refuted the allegations levelled by the Congress about the private lender paying remuneration in the form of salary or employee stock option plans (ESOPs) to SEBI Chairperson Madhabi Puri Buch.
In a statement, it said that ICICI Bank or its group companies have not paid any salary or granted any ESOPs to Madhabi Puri Buch after her retirement, other than her retiral benefits.
“It may be noted that she had opted for superannuation with effect from October 31, 2013. During her employment with the ICICI Group, she received compensation in the form of salary, retiral benefits, bonus and ESOPs, in line with applicable policies,” the ICICI Bank noted.
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“All the payments made to Buch post her retirement had accrued to her during her employment phase with the ICICI Group. These payments comprise ESOPs and retiral benefits,” the bank informed.
The Congress had alleged that Buch was taking a regular salary from ICICI Bank despite being a full-time member of SEBI.
The ICICI Bank said that under its ESOP rules, “the ESOPs vest over the next few years from the date of allotment. As per rules existing at the time of her ESOP grant, employees including retired employees had the choice to exercise their ESOPs anytime up to a period of 10 years from the date of vesting”.
The bank added that as per Income Tax rules, the difference between the price of the stock on the day of exercise and the “allotment price is treated as perquisite income and is reflected in Part B of the Form16 of employees, including retired employees”.
“The Bank is required to deduct the perquisite tax on this income. In addition, Form -16 covers the payment made towards the retiral benefits of former employees,” the statement added.
At a press conference, the Congress earlier alleged that since the current SEBI Chairperson took office in 2017, she has not only been drawing a salary from SEBI, but has also been holding an office of profit at the ICICI Bank, continuing to receive income to this very day.
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