Mumbai Court Orders FIR Against Former SEBI Chief Over Stock Fraud Allegations

The court cites prima facie evidence of regulatory lapses and collusion, directing a monitored investigation into six officials, including ex-SEBI chairperson Madhabi Puri Buch.

A special Anti-Corruption Bureau (ACB) court in Mumbai has ordered an FIR against former SEBI chairperson Madhabi Puri Buch and five others for alleged stock market fraud and regulatory violations.
The allegations involve the fraudulent listing of a company on the Bombay Stock Exchange in 1994, allegedly facilitated by SEBI officials despite non-compliance with regulatory norms.
The court found prima facie evidence of regulatory lapses, collusion, and failure to prevent market manipulation, necessitating a fair and impartial investigation.
The complainant, a journalist, submitted evidence of procedural lapses, insider trading, and price manipulation, accusing SEBI officials of enabling corporate fraud and public fund siphoning.
SEBI has announced plans to challenge the court's order, describing the petitioner as a habitual litigant and asserting that the officials named were not in their roles at the time of the alleged violations.