SEBI to challenge Mumbai Court’s corruption probe FIR order on ex-Chief Madhabi Puri Buch | Stock Market News
Source: Live Mint
The Securities and Exchanges Board of India (SEBI), on Sunday, March 2, announced that they will initiate appropriate legal action over the corruption court order, which involves an allegation of involvement of SEBI’s ex-Chief Madhabi Puri Buch and five other officials into an irregularity in granting listing permission to a firm, according to an official press release.
“SEBI would be initiating appropriate legal steps to challenge this order and remains committed to ensuring due regulatory compliance in all matters,” said SEBI in its official statement.
Earlier, a Mumbai Anti-Corruption Bureau special court order directed that an FIR be registered against the former SEBI chairperson, Madhabi Puri Buch, three current full-time directors, and two officials over alleged involvement in an irregularity in granting listing permission to Cals Refineries Ltd.
Special ACB court judge Shashikant Eknathrao Bangar, passed the order on Saturday, reported the news agency PTI.
“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 the securities market regulator on Sunday.
SEBI’s take on the order
According to the release, SEBI said that the special court allowed the application of the case without issuing any notice or granting SEBI a chance to present its take on the facts for the record.
They also said that the officials in question were not holding their respective positions at SEBI at the point of the case, as per the report.
“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,” said SEBI.
The securities market regulator also claimed that the applicant who filed the case allegedly has no purpose and is a person who is frequently involved in a lawsuit or another, adding cost to certain cases.
“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,” according to the official statement.
