Legal Battle Erupts: SEBI, BSE Challenge FIR in Bombay High Court

In a significant legal development, the Securities and Exchange Board of India (SEBI) and the Bombay Stock Exchange (BSE) have approached the Bombay High Court to challenge an Anti-Corruption Bureau (ACB) Court’s order that mandated the filing of an FIR against former SEBI Chairperson, along with current SEBI and BSE officials. The Bombay High Court granted an urgent hearing for the plea and issued directives to halt the registration of the FIR, pending further proceedings.

SEBI and BSE Challenge FIR Order in Bombay High Court

On Monday, SEBI and BSE filed their petitions before the Bombay High Court, seeking to challenge the ACB Court’s order to register an FIR against their officials. A single-judge bench, led by Justice Shivkumar Dige, agreed to hear the matter urgently. The Court issued a direction restraining the ACB from acting on the Sessions Court’s order until the hearing on Tuesday, March 4.

Solicitor General Tushar Mehta and senior counsel Amit Desai, representing SEBI and BSE, raised the issue during the proceedings, prompting Justice Dige to schedule the urgent hearing. The case revolves around allegations concerning SEBI’s former Chairperson and some current officials of the stock exchange.

Legal and Procedural Concerns Raised by SEBI and BSE

SEBI issued a statement highlighting its intent to challenge the order legally, asserting that it remained committed to ensuring regulatory compliance. SEBI pointed out that the applicant who filed the petition in the ACB Court was known for filing “frivolous” cases, many of which had been dismissed previously, with costs imposed in some instances.

In its statement, SEBI further clarified that the officials named in the case were not in office during the period in question, and the application for the FIR was allowed by the court without giving SEBI the chance to present its side of the story.

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Similarly, the BSE also opposed the ACB Court’s order, describing the application for an FIR as “frivolous and vexatious.” The BSE echoed SEBI’s concerns, stating that the application had been allowed without proper notice or opportunity to present their facts.

Future Proceedings and Legal Implications

The Bombay High Court’s decision to grant an urgent hearing and restrain the FIR registration comes as a temporary relief to SEBI and BSE. The court will review the petitions on March 4 and decide whether the ACB Court’s order should stand or be overturned.

Both SEBI and BSE are expected to continue their legal battle to challenge the FIR and address concerns regarding the procedural fairness of the ACB Court’s decision.