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Mumbai: Former Securities and Exchange Board of India (SEBI) chief Madhabi Puri Buch, along with five others, has approached the Bombay High Court seeking to quash a special court’s order directing the registration of an FIR against them for alleged stock market fraud.
The Bombay High Court is scheduled to hear their pleas on March 4, 2025, as per a report by PTI. Meanwhile, the Anti-Corruption Bureau (ACB) has been instructed to refrain from taking any action based on the special court’s order until then.
Case Background
The case revolves around allegations of regulatory violations and stock market fraud. An Anti-Corruption Bureau (ACB) court judge, Shashikant Eknathrao, had directed the ACB to register an FIR against Buch and five other officials, citing fraudulent stock market activities and lapses in regulatory oversight. The court also stated that it would monitor the investigation and demanded a status report within 30 days
Allegations and Reactions
The case was filed by journalist Sapan Shrivastava, who alleged that a company named Cals Refineries Ltd was fraudulently listed on the BSE in 1994 with the alleged involvement of regulatory authorities, particularly SEBI. The complaint accuses the officials of round-tripping, insider trading, and price manipulation, misleading investors into believing the company was financially sound.
However, BSE and SEBI have dismissed the allegations, calling them “frivolous and vexatious.”
- SEBI has stated that it will challenge the order legally and remains committed to regulatory compliance.
- The BSE’s statement clarified that the accused officials were not in their respective positions at the time of the alleged fraud and had no connection with the company.
Madhabi Puri Buch, India’s first woman SEBI chief, completed her three-year tenure on Friday. As the case unfolds, the Bombay High Court’s upcoming hearing on March 4 will be crucial in determining the next steps in the legal proceedings.
Sources By Agencies
