A special Anti-Corruption court in Mumbai has ordered the registration of an FIR against top officials of the Securities and Exchange Board of India (SEBI), including former SEBI Chairperson Madhabi Puri Buch and senior officials from the Bombay Stock Exchange (BSE), over allegations of stock market fraud and regulatory violations.
The court’s directive comes in response to a complaint filed by Thane-based journalist Sapan Shrivastava, who alleged large-scale financial fraud and corruption in the listing of a company on the stock exchange. The complaint accused SEBI officials of failing in their statutory duties, facilitating market manipulation, and enabling corporate fraud by permitting the listing of a company that did not meet the required norms.
Special Judge SE Bangar reviewed the complaint and supporting documents and found prima facie evidence of wrongdoing. The court directed the Anti-Corruption Bureau (ACB), Mumbai, to investigate the matter and register an FIR under relevant provisions of the Indian Penal Code, the Prevention of Corruption Act, and the SEBI Act.
“The allegations disclose a cognizable offense, necessitating a fair and impartial probe,” the court stated. The judge added that there is prima facie evidence of regulatory lapses and collusion, requiring judicial intervention. The court has directed the ACB to submit a status report within 30 days.
The respondents in the complaint include former SEBI Chairperson Madhabi Puri Buch, Whole Time Members Ashwani Bhatia, Ananth Narayan G, and Kamlesh Chandra Varshney, along with BSE Chairman Pramod Agarwal and CEO Sundararaman Ramamurthy. However, none of them were represented in the court proceedings.
Additional Public Prosecutors Prabhakar Tarange and Rajlaxmi Bhandari appeared for the government of Maharashtra. The court emphasized the need for a thorough investigation, citing the gravity of the allegations and the inaction by law enforcement and SEBI.
