A special Anti-Corruption Court in Mumbai has ordered the registration of an FIR (First Information Report) against top officials of the Securities and Exchange Board of India (SEBI) and the Bombay Stock Exchange (BSE). This includes former SEBI Chairperson Madhabi Puri Buch and other senior officials. The case involves allegations of stock market fraud and regulatory violations.
Recently, Tuhin Kanta Pandey has been appointed as new SEBI Chairman. The government on Thursday has appointed finance secretary Tuhin Kanta Pandey as the new Sebi chairman.
The court’s decision came after a petition was filed by Sapan Shrivastava, a journalist based in Thane, Maharashtra. He alleged that there was large-scale financial fraud and corruption in the listing of a company on the stock exchange.
According to Shrivastava, SEBI officials failed in their legal duty and allowed the listing of a company that did not meet the required norms. He claimed that this led to market manipulation and investor losses. The complaint also alleged that:
- SEBI officials were involved in insider trading and helped certain corporate entities gain unfair advantages.
- Public funds were misused after the company was listed on the stock exchange.
- There was collusion between SEBI and corporate groups, allowing unethical financial activities.
The complaint named several high-ranking officials, including:
- Madhabi Puri Buch (Former SEBI Chairperson)
- Ashwani Bhatia (Whole Time Member, SEBI)
- Ananth Narayan G (Whole Time Member, SEBI)
- Kamlesh Chandra Varshney (Whole Time Member, SEBI)
- Pramod Agarwal (Chairman, BSE)
- Sundararaman Ramamurthy (CEO, BSE)
However, during the court proceedings, none of these officials were represented by a lawyer.
On behalf of the Maharashtra Government, the case was presented by Additional Public Prosecutors Prabhakar Tarange and Rajlaxmi Bhandari.
Judge S.E. Bangar reviewed the complaint and supporting documents and found prima facie (initial) evidence of wrongdoing. As a result, the court ordered the Mumbai Anti-Corruption Bureau (ACB) to register an FIR under the:
- Indian Penal Code (IPC)
- Prevention of Corruption Act
- SEBI Act
The court stated that the allegations involved serious financial misconduct and required a fair and unbiased investigation.
The court’s statement read: “There is clear evidence of regulatory failures and collusion. Law enforcement and SEBI have failed to act, making judicial intervention necessary.”
The court directed the ACB to submit a status report within 30 days on the progress of the investigation. This case could have major implications for India’s stock market regulation and corporate governance. More details on this case will be released soon.
