Story by Raksha Bhattacharjee
An FIR has been filed against the former chairperson of the market regular by a special court in Mumbai.
In relation to suspected stock fraud and regulatory infractions, a special Mumbai court has directed the Anti-Corruption Bureau (ACB) to file a formal complaint (FIR) against former SEBI Chairperson Madhabi Puri Buch and five other officials. The court promised to keep an eye on the investigation and requested a progress report in 30 days.
A reporter who was the complainant had requested an investigation into the accused’s alleged crimes, which included widespread financial fraud, regulatory infractions, and corruption.
In violation of the SEBI Act, 1992 and its rules and regulations, the accusations concern the fraudulent listing of a firm on the stock exchange with the active cooperation of regulatory bodies, especially the SEBI. The claims reveal a cognisable offense, which calls for an investigation, the court order added. It stated that the inaction of SEBI and law enforcement agencies calls for judicial intervention under the CrPC.
The complainant said that by permitting the listing of a firm that did not adhere to the established standards, SEBI officials had disregarded their statutory obligations, allowed market manipulation, and permitted corporate fraud.
The complaint said that despite numerous attempts to contact the relevant police station and regulatory agencies, they had not taken any action. Upon reviewing the available evidence, the court ordered the ACB Worli, Mumbai Region, to file a formal complaint in accordance with the applicable sections of the IPC, the Prevention of Corruption Act, the SEBI Act, and other laws.
The accusations made by Hindenburg and Madhabi Puri Buch
On Friday, India’s first female Sebi chief, Buch, who had to deal with political backlash after being accused of having a conflict of interest by US-based short seller Hindenburg, concluded her three-year term.
Even though Buch made great progress during her tenure, including quicker equity settlements, improved FPI disclosures, and boosting mutual fund penetration through ₹250 SIP, the final year of her term was marked by increased controversy as she fought a number of accusations from Hindenburg and the Congress party while also handling internal employee protests against “toxic work culture.”
Buch was under pressure to step down in August of last year after Hindenburg Research accused her of having a conflict of interest that hindered a comprehensive investigation of allegations of fraud and manipulation at the Adani Group. Hindenburg accused Madhabi Puri Buch and her husband Dhaval Buch of investing in offshore companies that were purportedly a part of a fund structure that reportedly included investments made by Vinod Adani, the older brother of Gautam Adani, the founder and chairman of the Adani company.
She met with all disclosure rules and the investments were made prior to her joining the regulator, according to the Buchs, who have refuted the accusation. Hindenburg recently declared that its operations would be discontinued.
