Mumbai, March 4, 2025, Former Securities and Exchange Board of India (SEBI) chairperson Madhabi Puri Buch, along with five others, has approached the Bombay High Court seeking to quash a special court order directing the registration of a First Information Report (FIR) against them for alleged stock market fraud. The Bombay High Court is scheduled to hear their pleas today.
Allegations of Market Manipulation
The case stems from an order by a special Anti-Corruption Bureau (ACB) court, which directed the ACB to file an FIR against Buch and other SEBI officials for alleged regulatory violations, including round-tripping, insider trading, and stock price manipulation. The complaint accuses the officials of misleading investors into believing that a company registered with SEBI in 1996 was financially stable, despite claims of fraudulent activities.
The complainant further alleges that despite repeated requests, the accused failed to take necessary regulatory action, prompting the complainant to escalate the matter to the ACB. The special court, upon reviewing the complaint, directed an official probe into the matter, leading to the FIR directive.
Legal Developments and Bombay High Court Proceedings
Following the special court’s directive, Madhabi Puri Buch and the other accused filed a petition in the Bombay High Court, seeking to quash the order. The High Court has since placed a temporary stay on any action against Buch pending the hearing.
As the legal battle unfolds, the case raises concerns over regulatory oversight in India's financial markets. The outcome of today’s High Court proceedings will be closely watched, as it could set a precedent for future cases involving allegations of regulatory lapses within SEBI.
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