NEW DELHI: A Mumbai court has ordered an FIR against top SEBI officials and BSE executives. The case involves alleged stock market fraud and regulatory violations.
Special ACB Court Judge Shashikant Eknathrao Bangar passed the order on Saturday. The judge said there is prima facie evidence of regulatory lapses and collusion.
The court will monitor the investigation and has sought a status report in 30 days. It noted that the allegations disclose a cognizable offense, necessitating a probe.
The case was filed by journalist Sapan Shrivastava, alleging large-scale fraud and corruption. It claims SEBI officials allowed a company to list fraudulently.
Former SEBI Chairperson Madhabi Puri Buch is among the accused. Other officials named include Ashwani Bhatia, Ananth Narayan G, and Kamlesh Chandra Varshney.
BSE Chairman Pramod Agarwal and CEO Sundararaman Ramamurthy are also named. The complaint alleges insider trading and siphoning of public funds.
The judge said SEBIās inaction made judicial intervention necessary under the Criminal Procedure Code. The ACB Worli, Mumbai Region, has been directed to register the FIR.
Madhabi Puri Buch recently completed her three-year tenure as Indiaās first woman SEBI chief. She faced allegations of conflict of interest by Hindenburg Research.
Hindenburg accused Buch and her husband of investing in offshore entities linked to Vinod Adani. They denied the claims, stating the investments were made before her SEBI tenure.
During her tenure, Buch introduced faster settlements, enhanced FPI disclosures, and promoted mutual fund penetration. However, her last year saw major controversies.
The Adani-Hindenburg controversy and internal SEBI employee protests over a “toxic work culture” added pressure. She faced calls to resign in August 2023.
Hindenburg, which accused Buch of shielding Adani Group, has since shut down its business. The case has sparked political debates, including in Delhi Elections 2025.
The investigationās outcome could impact investor confidence and regulatory credibility. SEBI has not yet responded to the court order or media queries.
