SEBI plans to challenge court order permitting FIR against former chief Madhabi Puri Buch and other officials

SEBI has recently announced its decision to challenge a ruling by a Mumbai court regarding the registration of an FIR against former SEBI Chair Madhabi Puri Buch and a few others. This order pertains to allegations of financial fraud, regulatory infractions, and corruption related to a company’s stock market debut.

The directive from the special court in Mumbai mandates law enforcement to file an FIR against Buch and other individuals in connection with the purported financial misconduct. The accusations are centered around violations in regulatory protocols linked to a specific company’s listing on the stock exchange.

Following legal proceedings initiated by Sapan Shrivastava, a legal news journalist from Thane, urging the authorities to investigate and file an FIR, the court took action. The complainant raised concerns about considerable financial deception involving the deceptive listing of Cals Refineries Ltd. on the stock exchange. According to the complaint, SEBI officials neglected their mandated responsibilities, leading to market manipulation and potential corporate malpractice.

The allegations further pointed out that the approval for the listing was granted despite the company’s failure to meet the regulatory standards, with regulatory bodies allegedly involved in the process. Despite these claims, SEBI defended its officials, noting that they were not serving in their respective roles during the period of the purported fraud.

SEBI argued that the court’s decision to proceed with the FIR application lacked procedural fairness since no prior notification or opportunity was provided to SEBI to present a case based on the facts. The allegations focused on alleged irregularities in permitting the company’s listing on the Bombay Stock Exchange in 1994, supposedly breaching several SEBI regulations.

Upon reviewing the provided evidence, the court determined that the claims indicated a plausible criminal offense that warranted a thorough investigation. Consequently, the court instructed the Anti-Corruption Bureau (ACB) in the Worli region of Mumbai to register an FIR under relevant legal statutes, including the Indian Penal Code, the Prevention of Corruption Act, the SEBI Act, and other applicable laws.

SEBI has communicated its intention to challenge the court’s decision and emphasized its firm commitment to upholding regulatory compliance across all domains. The regulatory body remains steadfast in its stance to address legal matters using appropriate legal measures, ensuring the integrity of the financial landscape.