In a significant legal development, a special Anti-Corruption Bureau (ACB) court in Mumbai has directed the registration of a First Information Report (FIR) against former Securities and Exchange Board of India (SEBI) Chairperson Madhabi Puri Buch and five other officials. The case pertains to allegations of stock market fraud and regulatory violations.
The order, issued by Special Judge S.E. Bangar, came in response to a petition filed by journalist Sapan Shrivastava. The complaint alleges that SEBI officials facilitated market manipulation and corporate fraud by permitting the listing of a company that did not meet the prescribed norms. The petition further claims that these actions resulted in investor losses and compromised the integrity of the regulatory framework.
Alongside Buch, the officials named in the complaint include SEBI Whole-Time Members Ashwani Bhatia, Ananth Narayan G, and Kamlesh Chandra Varshney, as well as Bombay Stock Exchange (BSE) Chairman Pramod Agarwal and CEO Sundararaman Ramamurthy. Notably, none of the respondents were represented during the court proceedings.
Upon reviewing the complaint and supporting documents, Judge Bangar found prima facie evidence of regulatory lapses and collusion. He stated that the allegations disclose a cognizable offense, necessitating a fair and impartial investigation. Consequently, the court directed the ACB, Worli, Mumbai Region, to register an FIR under the relevant provisions of the Indian Penal Code, the Prevention of Corruption Act, the SEBI Act, and other applicable laws. The ACB has been instructed to submit a status report within 30 days.
