Mumbai Court Orders FIR Against Former SEBI Chief Madhabi Puri Buch

A recent development in Mumbai involves a special Anti-Corruption Bureau (ACB) court ordering the initiation of an FIR against the former chairperson of the Securities and Exchange Board of India (SEBI), Madhabi Puri Buch, as well as five other individuals for their alleged involvement in a stock market fraud and regulatory violations. The directive from Judge Shashikant Eknathrao Bangar came in response to a petition filed by a local journalist, urging an investigation into purported offenses encompassing significant financial fraud, regulatory oversights, and corrupt practices.

The individuals named in the FIR alongside Madhabi Puri Buch include Sundararaman Ramamurthy, Managing Director and Chief Executive Officer of the Bombay Stock Exchange (BSE), Pramod Agarwal, the former chairman and public interest director of BSE, as well as three whole-time members of SEBI—Ashwani Bhatia, Ananth Narayan G, and Kamlesh Chandra Varshney. The petition, put forth by journalist Sapan Shrivastava under the applicable section of the Code of Criminal Procedure (CrPC), sought legal intervention for the registration of an FIR and a comprehensive investigation into the alleged misconduct.

The allegations at the core of this case revolve around the fraudulent listing of a company on the stock exchange, which purportedly transpired due to the complicity of SEBI officials who circumvented regulatory norms outlined in the SEBI Act. The complainant contended that the SEBI officials neglected their mandated responsibilities, allowing for market manipulation and fostering corporate malpractice by permitting the listing of a company that did not adhere to the stipulated standards.

According to the filed application, despite lodging several complaints with law enforcement agencies and regulatory bodies, no concrete action had been taken, necessitating the intervention of the judiciary under Section 156(3) of the CrPC. The complainant substantiated their claims with a wealth of material evidence, including written grievances lodged with SEBI, official police records, regulatory filings, stock market reports, and audit documents, all of which depict procedural irregularities, market manipulation, and extensive fraudulent activities.

The initiation of an FIR against Madhabi Puri Buch and the other implicated officials marks a significant step towards ensuring accountability and transparency within India’s financial regulatory landscape. It underscores the importance of upholding integrity and compliance within the securities market to safeguard investor interests and maintain the overall credibility of the financial system. As this case unfolds through legal proceedings, it is crucial to uphold the principles of justice and due process to uncover the truth behind these alleged transgressions and hold those responsible accountable for their actions.