Mumbai Court orders FIR against Ex-SEBI Chief Madhabi Puri Buch over fraud

A special Anti-Corruption court in Mumbai has ordered the registration of an FIR against former SEBI Chairperson Madhabi Puri Buch and other senior officials of the Securities and Exchange Board of India (SEBI) over allegations of stock market fraud and regulatory violations. The directive was issued by Special Judge SE Bangar in response to a petition filed by Thane-based journalist Sapan Shrivastava.

Allegations of Market Manipulation

The complaint accuses SEBI officials of enabling corporate fraud and market manipulation by allowing the listing of a company that failed to meet regulatory norms. The petitioner claims that SEBI’s inaction led to financial fraud, insider trading, and the diversion of public funds post-listing. The Bombay Stock Exchange (BSE) has also been implicated in the case.

High-Profile Names Involved

Several key officials have been named in the complaint, including former SEBI Chairperson Madhabi Puri Buch, Whole Time Members Ashwani Bhatia, Ananth Narayan G, and Kamlesh Chandra Varshney. Additionally, BSE Chairman Pramod Agarwal and CEO Sundararaman Ramamurthy are also listed as respondents. The court proceedings took place without any representation from the accused parties.

Court’s Observations and FIR Order

After reviewing the petition and supporting evidence, Judge Bangar noted prima facie indications of regulatory lapses and potential collusion, warranting further investigation. The court ruled that the allegations point to a cognizable offense, necessitating a fair and impartial probe. As a result, the Anti-Corruption Bureau (ACB) in Mumbai has been directed to file an FIR under relevant sections of the Indian Penal Code, the Prevention of Corruption Act, and the SEBI Act.