SEBI to initiate legal steps to challenge Mumbai court order against Madhabi Puri Buch​

Capital market regulator Securities and Exchange Board of India (SEBI) on Sunday said it would initiate appropriate legal steps to challenge a Mumbai court order that ordered an FIR registration against former chairperson Madhabi Puri Buch over compliance and regulatory lapses. The Mumbai order follows a petition filed by a Thane-based journalist accusing Buch and several SEBI officials along with stock exchange BSE accused the respondents of engaging in alleged major financial fraud and corruption in a company’s listing on the bourse.

“The applicant is known to be a frivolous and habitual litigant, with previous applications being dismissed by the Court, with imposition of costs in some cases,” wrote SEBI in its statement in the matter dated March 2.

“A Miscellaneous Application was filed before the ACB Court, Mumbai against the former Chairperson of SEBI, three current Whole Time Members of SEBI and two officials of the BSE.

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The application sought directions for the Police to register an FIR and investigate into the alleged irregularities in granting listing permission to a Company on the Bombay Stock Exchange in 1994, without complying with the provisions of the SEBI Act, 1992, SEBI (ICDR) Regulations, 2018, and the SEBI (LODR) Regulations, 2015,” said SEBI.

Even though these officials were not holding their respective positions at the relevant point of time, the court allowed the application without issuing any notice or granting any opportunity to SEBI to place the facts on record, the regulator added.

SEBI noted that the alleged misconduct dates back to 1994, when the people named in the complaint were not associated with the regulator.

It also said that it wasn’t given any opportunity to give its position in the matter.

The complainant accused Buch and certain SEBI officials to illegally facilitate the listing of Cals Refineries shares on stock exchange BSE.