Investigation File Submission by SEBI After Three Decades: What Caused the Protracted Delay?
In a significant development, a Mumbai anti-corruption court has ordered the Anti-Corruption Bureau (ACB) to register a First Information Report (FIR) against Madhabi Puri Buch, former Securities Exchange Board of India (Sebi) chairperson, and several other top officials. The directive comes following a complaint filed by journalist Sapan Shrivastava, who alleges that the accused allowed a fraudulent company, Cals Refineries Ltd, to be listed on the Bombay Stock Exchange (BSE) in the 1990s.
The court's decision was based on the argument that the accused had violated stock market regulations, leading to Srivastava and his family suffering huge monetary losses when they invested in the company on December 13, 1994. The complaint was filed against Buch, three Sebi whole-time members, the BSE chairman, and the CEO.
It's important to note that the allegations against Buch pertain to violations that predate her Sebi tenure and suspension. Buch served as Sebi chairperson from March 2022 until February 2025 and was the first female and first private-sector person to hold the position. She had also been a whole-time member at Sebi prior to her chairpersonship, working in surveillance and regulatory portfolios. Her suspension from trading in 2017 indicates prior regulatory actions but does not preclude investigation into separate alleged offenses from even earlier times.
The Bombay high court has stayed the anti-corruption court's direction, but the investigation is intended to address a gross miscarriage of justice. The court found prima facie evidence against current officials of Sebi and BSE for a loss incurred 30 years ago. The investigation is being initiated by the ACB, Mumbai, and it aims to establish facts and accountability regarding the alleged fraudulent listing of Cals Refineries Ltd on the BSE.
An online search would reveal that Cals Refineries Ltd was suspended from trading in 2017. The court's decision to register the FIR reflects procedural or jurisdictional findings based on the complaint or investigation regarding these long-past allegations and is not contingent on Buch's current or later official roles or suspension status. It represents the court's move to formally start a criminal investigation into those historic claims to establish facts and accountability.
References: [1] News article on the court order [2] Article about Madhabi Puri Buch's appointment as Sebi chairperson [3] Article about Madhabi Puri Buch's tenure as Sebi chairperson and her background
