A special court in Mumbai has ordered the Anti-Corruption Bureau (ACB) to file an FIR against former SEBI chairperson Madhabi Puri Buch and five other officials concerning alleged stock market fraud and regulatory breaches.
Judge Shashikant Eknathrao Bangar emphasized in his March 1 order that there is prima facie evidence of regulatory lapses and collusion, necessitating a fair and impartial investigation. The court will oversee the probe and has requested a status report within 30 days. The order highlighted that the allegations indicate a cognizable offence, requiring formal investigation, and criticized the inaction of law enforcement agencies and the Securities and Exchange Board of India (SEBI), as reported by PTI.
The complaint points to extensive financial fraud, regulatory violations, and corruption. It alleges that a company was deceitfully listed on the stock exchange with active involvement from SEBI officials, bypassing compliance with the SEBI Act, 1992. It also claims that SEBI officials neglected their duties, facilitated market manipulation, and enabled corporate fraud.
