The Securities and Exchange Board of India (SEBI) announced on Sunday that it will challenge the Anti-Corruption (ACB) court’s directive to register an FIR against its former chairperson Madhabi Puri Buch and other officials over alleged stock market fraud. SEBI contended that the order was based on a “frivolous” petition and that it was not given a chance to present its case.
According to SEBI, the case pertains to alleged irregularities in granting listing permission to a company on the Bombay Stock Exchange (BSE) in 1994. The application, filed before the ACB Court in Mumbai, named Buch, three current Whole Time Members, and two BSE officials, accusing them of not following SEBI regulations.
SEBI pointed out that the officials in question were not even in their respective positions at the time of the alleged irregularities. Despite this, the court allowed the application without issuing a notice or providing SEBI an opportunity to respond.
The regulatory body further stated that the applicant is a habitual litigant, with previous cases dismissed and penalties imposed in some instances. SEBI reaffirmed its commitment to due regulatory compliance and said it would take legal steps to challenge the court’s decision.
The Bombay Stock Exchange (BSE) issued this statement to clarify its stance regarding a court order directing an FIR against certain officials, including former SEBI chairperson Madhabi Puri Buch, over alleged stock market irregularities.
The Bombay Stock Exchange statement read, “The named company, Cals Refineries Ltd., was listed at BSE in 1994. The officials named in the application were not in their respective positions at the time of listing and were not connected with the company at all. The application is frivolous and vexatious in nature. The Honourable Court has allowed the application without issuing any notice or granting any opportunity to BSE to place the facts on record. BSE is initiating necessary and appropriate legal steps in this regard. As a responsible market institution, BSE remains committed to upholding regulatory compliance and ensuring transparency.”
Buch, first woman SEBI chief, completed her three-year tenure on Friday amid allegations of conflict of interest following reports by US-based short-seller Hindenburg and subsequent political scrutiny.
“A Miscellaneous Application was filed before the ACB Court, Mumbai against the former Chairperson of SEBI, three current Whole Time Members of SEBI and two officials of the BSE.” The application sought directions for the police to register an FIR and investigate into the alleged irregularities in granting listing permission to a company on the Bombay Stock Exchange in 1994, without complying with the provisions of the SEBI Act, 1992, SEBI (ICDR) Regulations, 2018, and the SEBI (LODR) Regulations, 2015, the statement said.
“Even though these officials were not holding their respective positions at the relevant point of time, the court allowed the application without issuing any notice or granting any opportunity to SEBI to place the facts on record,” the statement further read.