HC halts FIR against Madhabi Buch—ex-SEBI boss—in fraud case
What's the story
The Securities and Exchange Board of India (SEBI) and the Bombay Stock Exchange (BSE) have moved the Bombay High Court challenging an Anti-Corruption Branch (ACB) Court order.
The order directs the filing of a First Information Report (FIR) against former SEBI Chairperson Madhabi Puri Buch and a few other SEBI and BSE officials.
The HC has agreed to hear the matter tomorrow, issuing oral directions to stop FIR registration till then.
Complaint
Allegations of regulatory violations and collusion
The case stemmed from a complaint by journalist Sapan Srivastava, who alleged that the BSE had listed Cals Refineries in 1994 without following SEBI's listing rules.
The complaint also alleged that SEBI failed to act against BSE and Cals Refineries, which led to investor losses.
Finding prima facie evidence of "regulatory lapses" and "collusion," the ACB Court ordered an FIR.
Official statements
SEBI's response to the allegations
Responding to the allegations, SEBI said it would take proper legal steps to challenge this order, reiterating its commitment to ensure regulatory compliance in all matters.
The regulator clarified the officials involved in this case were not in their respective positions when Cals Refineries was listed.
SEBI also noted it wasn't given an opportunity to be heard before the court passed this order.
BSE's position
BSE's stance on the FIR application
BSE also opposed the FIR application, calling it "frivolous and vexatious."
The exchange clarified that Cals Refineries was listed in 1994 and the officials named in the application weren't in their positions back then.
BSE said, "The court allowed the application without issuing any notice or granting an opportunity to present our case," and reiterated its commitment to upholding regulatory compliance and transparency.