On Sunday, the Securities and Exchange Board of India (SEBI) announced its intention to challenge the special Anti-Corruption (ACB) court ruling that mandates an FIR against former chairperson Madhabi Puri Buch and other officials related to purported stock market fraud.
It argued that the court was addressing a “frivolous” petition and had not allowed the board an opportunity to express its viewpoint.
“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 Sebi statement read.
The ACB court, responding to a miscellaneous application submitted by Sapan Shrivastava, instructed the Mumbai Anti-Corruption Bureau to file an FIR against Buch, whole-time members Ashwani Bhatia, Ananth Narayan, and Kamlesh Chandra Varshney, as well as Bombay Stock Exchange (BSE) CEO Sundararaman Ramamurthy and former chairman and public interest director Pramod Agarwal.
The order was issued on March 1.
ALSO READ: Amit Shah calls for crusade against drug trafficking
“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,” Sebi statement added.
The court directive against Buch and others was granted by Special Judge SE Bangar following a request from Thane journalist Sapan Shrivastava, who claimed significant financial fraud and corruption related to Cals Refineries’ stock exchange listing.
Shrivastava claimed that Sebi officials neglected their legal responsibilities, aided market manipulation, and permitted corporate fraud by approving the listing of a company that failed to satisfy the required standards.
“There is evident initial proof of regulatory failures and collusion, necessitating a just and unbiased investigation. The lack of action by law enforcement agencies and the Securities and Exchange Board of India (SEBI) requires judicial intervention as per the CrPC (Criminal Procedure Code),” the court stated in its ruling.
