Ex-SEBI chief Buch, 5 others get temporary relief from HC on FIR order against them

The Bombay high court on Monday (March 3, 2025) asked the Maharashtra Anti-Corruption Bureau (ACB) not to act until March 4 on an order directing it to lodge an FIR against former SEBI chairperson Madhabi Puri Buch and five other officials for alleged stock market fraud and regulatory violations.

Former SEBI chairperson Madhabi Puri Buch, Bombay Stock Exchange MD Sundararaman Ramamurthy and four other officials had on Monday moved the Bombay high court asking to quash a special court order for a FIR to be registered against them for alleged stock market fraud and regulatory violations.

This case pertains to allegations of fraud committed in 1994 while listing a company in the BSE.

The pleas were mentioned for urgent hearing before Justice S G Dige, who said he would hear the pleas on Tuesday. Until then, the ACB, which has been directed to probe the case, was told not to act upon the special court order until March 4.

Also read: SEBI chief: Govt seeks ‘high-Integrity’ leader to replace Madhabi Buch

Order dubbed 'illegal'

Solicitor General Tushar Mehta appeared for Buch and three current whole-time Securities and Exchange Board of India (SEBI) directors Ashwani Bhatia, Ananth Narayan G and Kamlesh Chandra Varshney.

Senior counsel Amit Desai appeared for the Bombay Stock Exchange's managing director and chief executive officer Ramamurthy and its former chairman and public interest director Pramod Agarwal.

The pleas dubbed the special court order illegal and arbitrary.

Watch: Did Madhabi Buch even intend to attend PAC meet? Is SEBI beyond repair?

Prima facie evidence

A special court on March 1 ordered the ACB to file a FIR against Buch and the others on charges of stock market fraud and regulatory violations.

The special ACB court judge, Shashikant Eknathrao Bangar, said that there was prima facie evidence of regulatory lapses and collusion, requiring a fair and impartial probe.

The ACB court said it will monitor the probe and sought a status report within 30 days.

Complaint filed

The order was passed on a complaint filed by Sapan Shrivastava, a journalist who sought a probe into the alleged offences committed by the accused involving large-scale financial fraud, regulatory violations and corruption. The complainant contended that SEBI officials failed in their statutory duty, facilitated market manipulation, and enabled corporate fraud by allowing the listing of a company that did not meet regulatory norms.

The allegations pertain to the fraudulent listing of a company on the stock exchange in 1994 with the alleged active connivance of regulatory authorities, particularly the SEBI, without compliance under the SEBI Act, 1992.

Also read: Hindenburg-Adani row: Parliamentary panel summons SEBI chief Madhabi Buch

SEBI against court order

The SEBI on Sunday said the application was allowed by the court "even though these officials were not holding their respective positions at the relevant point of time".