Court Orders FIR Against Ex-Sebi Chief and Five Others

A special court in Mumbai has directed the Anti-Corruption Bureau (ACB) to register an FIR against former Sebi chairperson Madhabi Puri Buch and five other officials. The court found prima facie evidence of regulatory lapses and collusion in alleged stock market fraud and regulatory violations.

Allegations of Regulatory Failures and Corruption

The complainant, a media reporter, accused the SEBI officials of failing in their statutory duty, facilitating market manipulation, and enabling corporate fraud. The allegations involve the fraudulent listing of a company on the stock exchange with the connivance of regulatory authorities, without compliance under the SEBI Act, 1992.

Judicial Intervention and Monitoring

The court has decided to monitor the probe and has sought a status report within 30 days. It noted that the inaction by law enforcement agencies and SEBI necessitates judicial intervention under the provisions of the CrPC (Criminal Procedure Code).

Controversial Tenure of Madhabi Puri Buch

Madhabi Puri Buch, India's first woman Sebi chief, recently completed her three-year tenure amidst controversy. Her tenure saw significant achievements but was marred by allegations of conflict of interest and dealing with in-house employee protests against a "toxic work culture".