The Securities and Exchange Board of India (SEBI) announced on Sunday, March 2, that it would challenge the special Anti-Corruption (ACB) court's order directing an FIR against former chairperson Madhabi Puri Buch and other officials over an alleged stock market fraud. SEBI argued that the court acted on a "frivolous" petition and did not provide the board an opportunity to present its defense.
In a statement issued today, SEBI dismissed the allegations and announced plans to take legal action against the order. The regulator described the petitioner as "a frivolous and habitual litigant, with previous applications being dismissed by the Court, with imposition of costs in some cases."
SEBI further assured its commitment to regulatory compliance and stated it would challenge the order accordingly.
FIR Against Former SEBI Chairperson
A special Mumbai court instructed the Anti-Corruption Bureau (ACB) to register an FIR against Buch over allegations of stock market fraud and regulatory breaches. The judge, Shashikant Eknathrao Bangar, stated there is "prima facie evidence of regulatory lapses and collusion," warranting a thorough investigation.
The court also emphasized the need for judicial intervention due to the inaction of law enforcement and SEBI, citing the CrPC. The complaint, filed by a media reporter, calls for a probe into alleged financial fraud, regulatory violations, and corruption.
More About the Case
The allegations involve the fraudulent listing of a company on the stock exchange, allegedly facilitated by regulatory authorities, particularly SEBI, who failed to enforce compliance with the SEBI Act of 1992 and its associated rules and regulations.
The complainant argues that SEBI officials neglected their statutory responsibilities, enabling market manipulation and corporate fraud by approving the listing of a company that did not meet the required criteria and norms set by the regulatory body.
The complaint suggests that this breach of duty led to significant financial misconduct and regulatory violations.
