March 2nd 2025.
A court in Mumbai has made an order for the Anti-Corruption Bureau to take action against former Sebi chairperson Madhabi Puri Buch and five other officials. It is believed that there was misconduct and collusion, which requires a fair and unbiased investigation according to the special ACB court judge, Shashikant Eknathrao Bangar, who passed the order on Saturday. The court has also stated that it will be overseeing the investigation and has requested a status report within 30 days.
The officials mentioned in the court order include BSE's Managing Director and Chief Executive Officer Sundararaman Ramamurthy, its former chairman and public interest director Pramod Agarwal, and three whole time members of Sebi - Ashwani Bhatia, Ananth Narayan G, and Kamlesh Chandra Varshney. In response to the order, Sebi has stated that they will be taking legal action against the decision and are committed to ensuring compliance with regulations in all matters.
The complaint that led to this court order was made by Sapan Shrivastava, a media reporter, who has requested an investigation into the alleged offenses committed by the accused. These offenses include financial fraud, regulatory violations, and corruption. The complaint alleges that a company was listed on the stock exchange with the assistance of regulatory authorities, specifically Sebi, without following proper procedures. The complainant claims that the Sebi officials neglected their duty and allowed for market manipulation and corporate fraud.
Despite multiple attempts to bring attention to these issues, the complainant states that no action has been taken by the police or regulatory bodies. The court order states that the complainant submitted evidence of procedural lapses and noncompliance in the IPO process, as well as documents showing market manipulation and correspondence from whistleblowers within Sebi. Other evidence presented includes financial reports, audit documents, and investor grievances, which indicate fraudulent practices and deception of the public.
The complainant alleges that the accused individuals engaged in round-tripping, insider trading, and price manipulation, deceiving investors into thinking the company was financially stable. After reviewing the evidence presented, the court has directed the ACB Worli, Mumbai Region, to register an FIR under relevant laws and regulations.
In response to the court order, Sebi has released a statement clarifying that the application that led to this decision was filed against former Sebi officials, who were not in their positions at the time of the alleged offense. They also state that they were not given a chance to present their side of the story. The statement also mentions that the complainant has a history of filing frivolous and baseless applications, which have been dismissed in the past. The Bombay Stock Exchange also released a statement calling the application frivolous and vexatious, and stating that they will be taking legal action in response. They also emphasize their commitment to upholding regulatory compliance and transparency.
[This article has been trending online recently and has been generated with AI. Your feed is customized.]
[Generative AI is experimental.]
