BREAKING: Ex-SEBI Chief Madhabi Puri Buch, Others Move HC Against Order Directing FIR; Hearing Tomorrow

New Delhi: Madhabi Puri Bush, former Sebi (Securities and Exchange Board of India) chairperson, BSE MD Sundararaman Ramamurthy and four others on Monday (March 3) moved the Bombay High Court, seeking to quash a special court order that directed the Anti-Corruption Bureau (ACB) to file an FIR against them in connection with alleged stock market fraud and regulatory violations.

The petitioners, including current Sebi directors Ashwani Bhatia, Ananth Narayan G, and Kamlesh Chandra Varshney, argued that the special court’s decision was illegal and arbitrary.

The pleas were mentioned before a single bench of Justice S G Dige for urgent hearing on Tuesday.

Also read | SEBI To Challenge Court Order Of FIR Against Ex-Chief Madhabi Puri Buch
 

Solicitor General Tushar Mehta appeared for the Sebi officials, while Senior Counsel Amit Desai represented Ramamurthy, BSE’s MD and CEO, and former Chairman Pramod Agarwal.

The special court's order, issued on Saturday, directed the ACB to register an FIR against the officials for their alleged involvement in stock market fraud and regulatory violations.

Court Observes Prima Facie Evidence of Regulatory Lapses

Judge Shashikant Eknathrao Bangar observed that there was prima facie evidence of collusion and regulatory lapses, necessitating an impartial investigation.

The court has further instructed the ACB to monitor the probe and submit a status report within 30 days.

The case is based on a complaint filed by media reporter Sapan Shrivastava, who alleged that a fraudulent listing of a company took place in 1994 with the active involvement of regulatory authorities, particularly SEBI , without adhering to the proper compliance procedures under the SEBI Act of 1992, PTI reported.

Also read | SEBI Chairperson Madhabi Buch Skips Parliament's PAC Meet, Says 'Unable to Travel' to Delhi

Sebi has stated that it will initiate appropriate legal measures to challenge the court’s order. The market regulator emphasized that the application seeking an FIR was based on events that occurred before the current officials were in office, and the complaint was focused on a listing approval granted to a company in 1994.

In response, the Bombay Stock Exchange has described the application as "frivolous and vexatious" and rejected the allegations.

The matter is expected to be further addressed when the Bombay High Court convenes its hearing on Tuesday, as both parties await a final decision on the validity of the special court's order.