Mumbai, March 2, 2025 – The Securities and Exchange Board of India (SEBI) is gearing up to contest the Mumbai ACB Court’s directive to register an FIR against its former chairperson, Madhabi Puri Buch, along with three whole-time members and two officials of the Bombay Stock Exchange (BSE). SEBI has strongly refuted the allegations, calling the complainant a “habitual litigant” and vowing to take legal action against the court’s order.
Background of the FIR Order
On March 1, the Anti-Corruption Bureau (ACB) Court ordered an FIR against Buch, SEBI’s whole-time members Ashwani Bhatia, Ananth Narayan, Kamlesh Chandra Varshney, as well as BSE CEO Sundararaman Ramamurthy and former chairman Pramod Agarwal. The order followed a miscellaneous application filed by Sapan Shrivastava, who alleged irregularities in the listing of Cals Refineries.
The complainant claimed that SEBI facilitated the fraudulent listing of the company, failed in its regulatory duties, and allowed corporate misconduct by ignoring essential compliance norms. The allegations include violations of the SEBI Act, 1992, SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.
SEBI’s Response: Strong Rebuttal & Legal Challenge
SEBI has hit back at the order, calling the complainant’s allegations baseless. In its official statement, SEBI noted that Sapan Shrivastava has a history of filing frivolous legal cases, many of which have been dismissed with fines imposed on him.
“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. SEBI would be initiating appropriate legal steps to challenge this order and remains committed to ensuring due regulatory compliance in all matters,” SEBI stated.
Moreover, SEBI pointed out that the FIR was ordered without providing its officials an opportunity to present their case, despite the fact that some of the named officials were not even holding their respective positions at the time of the alleged violations.
What Are the Allegations?
The complaint revolves around the listing of Cals Refineries, with claims that SEBI officials overlooked critical compliance failures, which ultimately led to market manipulation and fund siphoning. According to the complainant:
- SEBI failed to enforce mandatory disclosure norms.
- SEBI permitted the company’s listing despite non-compliance with regulatory requirements.
- SEBI officials allegedly colluded with the accused company, allowing financial mismanagement.
However, SEBI has firmly denied these accusations, stressing its commitment to transparency and investor protection.
What Happens Next?
With SEBI preparing for a legal battle, the next step is likely an appeal against the ACB Court’s order. SEBI may move a higher court seeking a stay on the FIR registration, arguing procedural lapses and lack of merit in the allegations.
