FIR Ordered Against Ex-SEBI Chief Madhabi Buch, 5 Others Over Financial Fraud

Mumbai, India: A special Anti-Corruption Bureau (ACB) court has ordered the registration of an FIR against former SEBI chairperson Madhabi Puri Buch and five other officials over allegations of financial fraud, regulatory violations, and corruption. The complaint, filed by Thane-based journalist Sapan Shrivastava, accuses SEBI officials of allowing an irregular company listing on the Bombay Stock Exchange (BSE) in 1994, facilitating market manipulation and investor fraud.

The court directed the ACB to investigate under the IPC, Prevention of Corruption Act, and SEBI Act, citing prima facie evidence of round-tripping, insider trading, and price manipulation. Besides Buch, those named in the complaint include SEBI officials Ashwani Bhatia, Ananth Narayan G, Kamlesh Chandra Varshney, BSE chairperson Pramod Agarwal, and CEO Sundararaman Ramamurthy.

Judge Shashikant Eknathrao Bangar observed that SEBI failed to act despite multiple red flags, making judicial intervention necessary. A status report on the investigation is due in 30 days. SEBI has stated that it will challenge the court order, arguing that officials were not in their respective positions at the time of the alleged fraud.