Stock market fraud: FIR against ex-SEBI chief Madhabi Puri Buch
What's the story
A special Anti-Corruption Bureau (ACB) court in Mumbai, has ordered the registration of a First Information Report (FIR) against former Securities and Exchange Board of India (SEBI) Chairperson Madhabi Puri Buch.
The order also names five other officials from SEBI and the Bombay Stock Exchange (BSE).
The move comes as part of an investigation into alleged stock market fraud and regulatory violations.
Complaint
Allegations of regulatory violations and market manipulation
The complaint was filed by Thane-based journalist Sapan Shrivastava, who accused SEBI officials of permitting the listing of a firm that failed to meet the required norms.
The complaint also alleged collusion between SEBI and corporates, insider trading, and misuse of public funds post-listing.
Despite several appeals to law enforcement agencies, no action was taken initially on these allegations.
Judicial intervention
Why was FIR registered?
Finding prima facie evidence of regulatory lapses and collusion, the court deemed a fair and impartial investigation necessary.
It stressed that the inaction by SEBI and other law enforcement agencies warranted judicial intervention.
After perusing all available material, the court directed ACB Worli, Mumbai Region to file an FIR under relevant sections of the BNS, Prevention of Corruption Act, SEBI Act, etc.
Oversight
Court to monitor investigation and require status report
The Mumbai court has decided to monitor the investigation and has asked for a status report within 30 days. This order is aimed at ensuring transparency in the investigation process against Buch and other officials involved in the alleged stock market fraud case.