Bombay HC Halts FIR Against Former SEBI Chief Amid Fraud Allegations

The Bombay High Court delayed an FIR against former SEBI chair Madhabi Puri Buch and others concerning alleged 1994 stock market fraud. Accused officials denied charges, seeking dismissal of a special court order they claim lacks jurisdiction. SEBI and BSE labeled the allegations baseless and are challenging the order.

The Bombay High Court instructed the Maharashtra Anti-Corruption Bureau (ACB) to hold off until March 4 on a special court's order to file an FIR against Madhabi Puri Buch, former SEBI chairperson, and other officials over alleged stock market fraud and regulatory violations.

Madhabi Puri Buch, along with Bombay Stock Exchange MD Sundararaman Ramamurthy, approached the High Court seeking cancellation of the March 1 ruling by a special court in Mumbai that directed the ACB to investigate a 1994 listing fraud involving a BSE company. Justice S G Dige scheduled a hearing for March 4, ensuring that the ACB does not act meanwhile.

The special court's decision, which results from a complaint by media reporter Sapan Shrivastava, cites large-scale financial fraud and regulatory breaches. Meanwhile, SEBI and BSE have both criticized the allegations, labeling them frivolous and taking steps for a legal challenge.