High Court Suspends FIR Against Former Sebi Chief Amidst Allegations

The Bombay High Court has temporarily stayed a special court order to file an FIR against former Sebi chairperson Madhabi Puri Buch and others over alleged stock market fraud. The order was deemed mechanical without considering specific roles. The case involves charges from a 1994 company listing.

In a significant decision, the Bombay High Court has placed a four-week stay on a special court order directing the filing of an FIR against former Securities and Exchange Board of India (Sebi) chairperson, Madhabi Puri Buch, and five other officials. The charges relate to alleged stock market fraud and regulatory violations stemming from a 1994 event.

A single judge court led by Justice Shivkumar Dige noted that the special court's March 1 order was passed without attributing any specific role to the accused, suggesting a lack of detailed examination of the allegations. The complaints relate to supposed fraudulent conduct in listing a company on the Bombay Stock Exchange (BSE) in 1994.

The solicitor general representing three Sebi officials decried the order, labeling it a result of a non-application of mind by the special court, and underscored the absence of a prima facie case against the accused individuals. The judgment comes at a time of heightened scrutiny over regulatory compliance within India's financial markets.

(With inputs from agencies.)