Mumbai (03.03.2025): Anti-Corruption Bureau (ACB) has been directed by a Special ACB Court to register a FIR against former SEBI chairperson Madhabi Puri Buch and five others in connection with allegations relating to financial fraud, regulatory violations and corruption. The order came a day after Buch completed her tenure as SEBI chief.

The complaint was filed by Thane-based journalist Sapan Shrivastava, who alleged that SEBI had permitted listing of a company on the Bombay Stock Exchange (BSE) even though it failed to meet regulatory conditions under the SEBI Act, 1992. The allegedly fraudulent listing had taken place in 1994, with the active connivance of regulatory authorities, particularly SEBI. This facilitated market manipulation and enabled corporate fraud, it stated, adding that this highlighted the failure of SEBI officials in carrying out their statutory duty. Interestingly, the case pertains to the year 1994 while Buch's tenure as SEBI chief started in March 2022 and ended in same month in 2025.

Besides Buch, the complaint has named SEBI whole-time members Ashwani Bhatia, Ananth Narayan G, and Kamlesh Chandra Varshney; and BSE chairperson Pramod Agarwal and CEO Sundararaman Ramamurthy. Buch has long been in controversy after Hindenburg report made some revelations. However, now the short-seller had shut the shop.

The court directed the ACB to register an FIR under relevant provisions of the Indian Penal Code, Prevention of Corruption Act, SEBI Act and other applicable laws, to be monitored by the court. The judge has directed a status report to be submitted within 30 days.

Meanwhile, Buch and others have approached the Bombay High Court to quash the order passed by the court directing ACB to register a case against them. The matter is likely to be heard tomorrow. Solicitor General Tushar Mehta appeared for the SEBI officials implicated in the case.