No merit in complaint's allegations: BSE on court order against chairman & CEO

Reacting to a special Mumbai court's order against BSE's current MD and CEO Sundararaman Ramamurthy, the stock exchange said on Sunday that there was no merit in the complainant's allegations. The bourse also said that the court order was issued without any notice or hearing and that it would take appropriate legal steps against it.

The reaction from the exchange came a day after a special court in Mumbai ordered the filing of a first information report (FIR) against two of BSE's top officials, chairman Pramod Agarwal and CEO Sundararaman Ramamurthy, along with former Securities and Exchange Board of India (SEBI) chairperson Madhabi Puri Buch and the regulator's Whole-time Members Ashwani Bhatia, Ananth Narayan G and Kamlesh Chandra Varshney.

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Special Judge SE Bangar issued the order upon reviewing a petition filed by a journalist alleging major financial fraud and corruption in the listing of Cals Refinery's shares back in 1994.

BSE also said that the officers named in the order were not in office at that time.

The complainant alleged collusion between SEBI and corporate entities that led to serious financial crime.

Justice Bangar reviewed the complaint and its supporting documents, and found prima facie evidence of wrongdoing.

However, none of the alleged wrongdoers was represented in the court proceeding.

The judge then directed the Anti-Corruption Bureau (ACB) in Mumbai to register an FIR under relevant provisions under law.

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