Mumbai ACB Court Orders FIR Against Former SEBI Chairperson Madhabi Puri Buch and Officials

Mumbai’s Special Anti-Corruption Bureau (ACB) court has ordered the registration of an FIR against former SEBI chairperson Madhabi Puri Buch and five other officials over alleged stock market fraud and regulatory violations, according to a PTI report.

In an order issued on Saturday, Special Judge Shashikant Eknathrao Bangar stated that there was prima facie evidence of regulatory lapses and collusion, warranting a fair and impartial probe. The court has also decided to monitor the investigation and has directed authorities to submit a status report within 30 days.

Complaint Alleges Large-Scale Financial Fraud

The complaint, filed by a media reporter, accuses SEBI officials of engaging in large-scale financial fraud, regulatory violations, and corruption. It alleges that SEBI failed in its statutory duties, facilitated market manipulation, and allowed the fraudulent listing of a company that did not meet the prescribed norms.

According to the complaint, despite multiple appeals to law enforcement agencies and regulatory bodies, no action was taken, prompting judicial intervention.

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Court Directs Investigation Under Multiple Laws

After reviewing the case, the court noted that the allegations indicate a cognizable offence requiring investigation. As a result, the ACB Worli, Mumbai Region, has been directed to register an FIR under relevant sections of the Indian Penal Code (IPC), Prevention of Corruption Act, SEBI Act, and other applicable laws.

The case is expected to shed light on alleged misconduct within SEBI and could have far-reaching implications for stock market regulation in India. Authorities are expected to submit their findings in the next 30 days as the court closely monitors the probe.