Mumbai Court Orders FIR for Stock Market Fraud, Questions Ex-SEBI Chief Madhabi Puri Buch’s Involvement

In a surprising turn of events, a specialized Anti-Corruption Bureau (ACB) court in Mumbai has mandated the police to initiate an FIR against former SEBI head Madhabi Puri Buch and five other individuals for purported stock market fraud and regulatory transgressions. The directive was given by Special Judge S.E. Bangar following a plea filed by Thane-based journalist Sapan Shrivastava.

Madhabi Puri Buch, the erstwhile Chairperson of the Securities and Exchange Board of India (SEBI), holds the distinction of being the first female to lead the regulatory body. Hailing from the private sector and possessing substantial hands-on exposure to the capital market, Buch swiftly garnered acclaim through her energetic and evidence-backed approach.

Demonstrating a commitment to transparency in the formulation of guidelines, Buch established Industry Standards Forums (ISF) covering various aspects of SEBI’s regulatory infrastructure. This move facilitated an open and secure platform for stakeholders to contribute their perspectives. In light of the rising relevance of data, cybersecurity, and other evolving challenges, Buch ensured the establishment of dedicated standing committees to handle these critical domains.

Typically, SEBI orchestrates formal farewell events for outgoing chairpersons, a custom bypassed in Buch’s case owing to the allegations surrounding her involvement in the fraudulent activities. Nonetheless, a report by Business Standard indicated that Buch’s absence from a farewell event was due to her battle with COVID-19, necessitating a virtual farewell ceremony in compliance with pandemic-related constraints. A proper in-person farewell is slated to take place once Buch recuperates.

Buch’s exit was accompanied by an aura of peculiarity. She refrained from making an appearance at SEBI to bid farewell, hinting at a departure marked by unexpected circumstances. While she did not physically attend a farewell event, the circumstances surrounding her leave were undoubtedly noteworthy.