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SEBI contended that the court was acting on a “frivolous” petition and had not given the board a chance to present its side.
Former SEBI chief Madhabi Puri Buch(PTI)
The Securities and Exchange Board of India (SEBI) on Sunday said that it will challenge the special court order directing an FIR against former chairperson Madhabi Puri Buch and other officials in connection with alleged stock market fraud.
It contended that the court was acting on a “frivolous” plea and had not given the board a chance to put forth its view.
In a statement issued today, the capital market regulator said that a miscellaneous application was filed before the ACB Court, Mumbai against the former chairperson, three current Whole Time Members of SEBI and two officials of the Bombay Stock Exchange (BSE). It dismissed the allegations and vowed to take appropriate legal steps to challenge the order.
“The applicant is known to be a frivolous and habitual litigant, with previous applications being dismissed by the Court, with imposition of costs in some cases. SEBI would be initiating appropriate legal steps to challenge this order and remains committed to ensuring due regulatory compliance in all matters,” the statement said.
Court Orders FIR Against Buch
A special Mumbai court has directed the Anti-Corruption Bureau (ACB) to register an FIR against the former SEBI chairperson in connection with alleged stock market fraud and regulatory violations.
“There is prima facie evidence of regulatory lapses and collusion, requiring a fair and impartial probe,” the special ACB court judge, Shashikant Eknathrao Bangar, said in the order passed on Saturday.
The court order also noted that the allegations disclose a cognisable offence, necessitating an investigation.
The inaction by law enforcement (agencies) and the Securities and Exchange Board of India (SEBI) necessitates judicial intervention under the provisions of the CrPC (Criminal Procedure Code), it added.
The complainant, a media reporter, had sought an investigation into the alleged offences committed by the proposed accused, involving largescale financial fraud, regulatory violations and corruption.
What’s The Case?
The allegations pertain to the fraudulent listing of a company on the stock exchange with the active connivance of regulatory authorities, particularly the Sebi, without compliance under the SEBI Act, 1992 and rules and regulations thereunder.
The complainant claimed that the SEBI officials failed in their statutory duty, facilitated market manipulation, and enabled corporate fraud by allowing the listing of a company that did not meet the prescribed norms.
(With inputs from agencies)
