Mumbai court directs case against Madhabi Buch, top Sebi, stock market officials

A Mumbai court ordered a First Information Report (FIR) to be registered against some top officials of the Securities and Exchange Board of India (SEBI) including former SEBI Chairperson Madhabi Puri Buch. A special Anti-Corruption court ruled that a FIR should be registered against these entities in a case related to alleged stock market fraud and regulatory violations.

Special Judge S E Bangar issued the order on a petition filed by Sapan Shrivastava, a journalist based out of Thane, reported Financial Express. The complaint accused the SEBI officials of facilitating market manipulation and allowing corporate fraud by letting a company go through with the listing even when it failed to meet the prescribed norms.

The petitioner claimed that the capital markets regulator failed to exercise its statutory duty and this resulted in financial fraud, insider trading, and the embezzlement of public funds post the listing. The petition also named BSE in the allegations.