Bombay High Court Temporarily Halts FIR Against Ex-SEBI Chief and Officials

The court has stayed an order to investigate Madhabi Puri Buch and five others over alleged 1994 stock market fraud, pending further review.

A special Mumbai court directed the registration of an FIR against former SEBI Chairperson Madhabi Puri Buch and five others for alleged financial fraud and regulatory violations linked to a 1994 stock listing.
The allegations claim SEBI officials enabled market manipulation and corporate fraud by approving the listing of a non-compliant company, despite multiple complaints to regulatory bodies and law enforcement.
The Bombay High Court has temporarily stayed the FIR order, with a hearing scheduled for March 4, after Buch and others challenged the decision as arbitrary and legally unsound.
SEBI and BSE have dismissed the allegations, labeling the complainant a habitual litigant, and announced plans to take legal action to contest the special court's order.
The case has reignited scrutiny of SEBI's conduct, with calls for the regulator to ensure transparency and accountability in addressing allegations against its current and former officials.