Conflict Charges Rock Wockhardt Shares

Shares of Wockhardt Ltd fell by 5% after Congress accused Sebi chief Madhabi Buch of a conflict of interest. Buch allegedly received rental income from a company linked to Wockhardt, which Sebi was probing for insider trading. Congress claims Buch's actions violated Sebi's conflict of interest code.

Shares of Wockhardt Ltd tumbled 5 per cent on Friday, hitting the lower circuit limit, after the Congress levelled fresh conflict of interest charges against Sebi chief Madhabi Buch involving the pharmaceuticals firm.

Levelling more conflict of interest allegations against Sebi Chairperson Madhabi Buch, the Congress on Friday claimed that she received rental income from an entity affiliated with a company that the capital markets regulator was investigating for various cases, including that of insider trading.

The Congress' media and publicity department head Pawan Khera said that between 2018 and 2024, Buch -- as a whole-time member and later chairperson of the Securities and Exchange Board of India (Sebi) -- had been receiving rental income amounting to Rs 2.16 crore from ''Carol Info Services Limited'', a company affiliated to Wockhardt Ltd.

Wockhardt Ltd was being investigated by Sebi for various cases, including that of insider trading during 2023, he said at a press conference at the AICC headquarters in Delhi.

The stock dropped 5 per cent to Rs 1,034.60 -- its lower circuit limit -- on the BSE.

On the NSE, shares of the firm plunged 5 per cent to hit the lower circuit of Rs 1,034.55.

Khera asserted that this was an outright case of corruption that invoked conflict of interest, violating sections 4, 7 and 8 of Sebi's 2008 code on conflict of interests for members of its board.

(With inputs from agencies.)