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A specialized Anti-Corruption Bureau (ACB) court has ordered the Mumbai Police to file a First Information Report (FIR) against former Sebi chairperson Madhabi Puri Buch and five senior Bombay Stock Exchange (BSE) officials for alleged stock market fraud and regulatory breaches. Judge SE Bangar noted sufficient preliminary evidence of regulatory failures and possible collusion, necessitating a thorough investigation. The ACB must submit a status report within 30 days, as the court emphasized the need for judicial intervention due to inaction from law enforcement and Sebi.
This ruling followed a petition from journalist Sanap Srivastav, alleging financial misconduct and corruption involving Buch and other Sebi officials. The petition claims irregularities in company listings on the BSE, invoking sections of the Indian Penal Code and the Prevention of Corruption Act. The court will oversee the ACB’s investigation into the fraudulent listing of a company, allegedly facilitated by Sebi without following the SEBI Act of 1992.
The court directed the ACB Worli, Mumbai Region, to file an FIR based on relevant IPC sections, the Prevention of Corruption Act, the SEBI Act, and other laws after reviewing the evidence.
Madhabi Puri Buch, the first female chief of SEBI, faced conflict of interest allegations from US-based Hindenburg, leading to political scrutiny. She took office on March 2, 2022, and concluded her term on Friday, with Tuhin Kanta Pandey succeeding her. Unlike typical farewells for outgoing leaders, no such event occurred, suggesting an unexpected transition for Buch.
During her tenure, she made strides in equity settlements, FPI disclosures, and mutual fund accessibility through a Rs 250 SIP initiative. However, her final year was marred by controversies, including allegations from Hindenburg and protests over a “toxic work culture.”
In August, Buch faced pressure to resign after Hindenburg claimed her conflict of interest impeded investigations into the Adani Group. Hindenburg accused her and her husband, Dhaval Buch, of investing in offshore entities linked to Vinod Adani, which they denied, stating the investments were made before her regulatory role and that she followed disclosure protocols.
Recently, Hindenburg announced the closure of its business.
(Newsroom staff only edited this story for style from a syndicated feed)
