Ex-Sebi Chief In Trouble A Day After Retirement: Court Directs ACB to file FIR Against Buch

Sebi on Sunday said it would initiate ‘appropriate legal steps’ to challenge the order of the ACB Court in Mumbai against its former Chairperson, Madhabi Puri Buch. In a statement, the Sebi said that “the applicant is known to be a frivolous and habitual litigant.”

Mumbai: A special court here has directed the Anti-Corruption Bureau (ACB) to register an FIR against former Sebi chairperson Madhabi Puri Buch and five other officials in connection with alleged stock market fraud and regulatory violations.

“There is prima facie evidence of regulatory lapses and collusion, requiring a fair and impartial probe,” the special ACB court judge,” Shashikant Eknathrao Bangar, said in the order passed late on Saturday.

The court said it will monitor the probe and sought a status report of the case within 30 days.

The court order also noted that the allegations disclose a cognisable offence, necessitating an investigation.

The inaction by law enforcement agencies and the Securities and Exchange Board of India (Sebi) necessitates judicial intervention under the provisions of the CrPC (Criminal Procedure Code), it added.

The complainant, a media reporter, had sought an investigation into the alleged offences committed by the proposed accused, involving largescale financial fraud, regulatory violations and corruption.

The allegations pertain to the fraudulent listing of a company on the stock exchange with the active connivance of regulatory authorities, particularly the Sebi, without compliance under the Sebi Act-1992 and rules and regulations thereunder.

The complainant claimed that the Sebi officials failed in their statutory duty, facilitated market manipulation, and enabled corporate fraud by allowing the listing of a company that did not meet the prescribed norms.

Despite approaching the police station and regulatory bodies concerned on multiple occasions, no action has been taken by them, the complainant said.

The court, after considering the material on record, directed the ACB Worli, Mumbai Region, to register an FIR under relevant provisions of the IPC, Prevention of Corruption Act, Sebi Act, and other applicable laws.