EX Sebi Chief Madhabi Puri Buch
The order pertained to allegations of financial fraud and regulatory violations concerning the listing of a company on the Bombay Stock Exchange in 1994.
Besides Buch, special judge Shashikant Eknathrao Bangar ordered FIR against three current whole-time directors of SEBI – Ashwani Bhatia, Ananth Narayan G and Kamlesh Chandra Varshney – and two officials from the Bombay Stock Exchange (BSE) – Pramod Agarwal and Sundararaman Ramamurthy.
“Considering the gravity of allegations, applicable laws, and settled legal precedents, this Court deems it appropriate to direct an investigation under Section 156(3) CrPC…The concerned Anti-Corruption Bureau, Worli, Mumbai Region, Mumbai is directed to register an FIR under the relevant provisions of IPC, Prevention of Corruption Act, SEBI Act, and other applicable laws,” the Court directed.
A status report on the investigation is expected to be submitted within the next 30 days.
The order was passed on an application filed by Sapan Shrivastava, a media reporter from Dombivali, who sought an investigation into the alleged irregularities surrounding the listing of a company on the Bombay Stock Exchange, facilitated by top officials from the SEBI.
SEBI issued a press release on Sunday expressing its intent to challenge the order.
“A miscellaneous application was filed before the ACB Court, Mumbai against the former chairperson of SEBI, three current whole-time members of SEBI, and two officials of the BSE…Even though these officials were not holding their respective positions at the relevant point of time, the court allowed the application without issuing any notice or granting any opportunity to SEBI to place the facts on record,” the press release said.
The press release also noted the complainant’s history of filing frivolous applications and pointed out that many previous petitions filed by him had been dismissed with costs.
SEBI emphasized its commitment to ensuring regulatory compliance.
“SEBI would be initiating appropriate legal steps to challenge this order and remains committed to ensuring due regulatory compliance in all matters,” the press release said.