Madhabi Puri Butch
The Bombay High Court on Monday directed the Bureau (ACB) (ACB) to not take any action till March 4 on the order to register an FIR against the former chairperson of market regulator SEBI and five other officials. Buch, BSE managing director Sundarman Ramamurthy and four other officials had moved the Bombay High Court against the order to register an FIR against them. A special court in Mumbai on Saturday ordered the ACB of investigating the alleged fraud and regulatory violations in the stock market and filed a case against five other officials and investigating. On the petition of Buch and others against this order, the single bench of Justice SG Digy said that these petitions will be heard on Tuesday and till then no action will be taken on the order of the special court of ACB.
Tushar Mehta appeared in High Court
Solicitor General Tushar Mehta appeared in the High Court on behalf of three current full-time directors of Buch and SEBI- Ashwini Bhatia, Anant Narayan ji and Kamlesh Chandra Varshney. Senior Advocate Amit Desai appeared on behalf of BSE Managing Director and Chief Executive Officer Sundarman Ramamurthy and its former chairman and Public Interest Director Pramod Aggarwal. The petitions appealed to cancel it, calling the order of the special court illegal and arbitrary. These petitions stated that the order of the special court is not legally eligible, as the notice was not issued to the petitioners and they were not heard before taking the decision. The petitions stated, “The order of the special court is clearly flawed, clearly illegal and passed without jurisdiction. The court has failed to consider that the complainant has not been able to make a prima facie case against the applicants to fail to discharge his duties as SEBI officials.
Will take appropriate legal steps
SEBI said in a statement on Sunday that it would take appropriate legal steps to challenge the order of the particular court and is committed to ensure proper regulatory compliance in all cases. The complaint media reporter Sapan Srivastava had appealed to the special court to investigate them, accusing them of large -scale financial fraud, regulatory violations and corruption. The complainant claims that SEBI officials failed to discharge their statutory duties, promoted rigging in the market and made the path of corporate fraud easier by allowing the company not meeting the prescribed norms. ACB court judge Shashikant Eknathrao Bangar said in an order passed on Saturday, “Prima facie there is evidence of regulatory omissions and collusion, which requires a fair investigation.”
Order to present report
The court said that the allegations revealed a cognizable offense, for which investigation is necessary. The special court said that it would monitor the investigation. He also ordered to present the case report report within 30 days. The first female head of the Securities and Exchange Board of India (SEBI), Buch, was also accused of confrontation of interest by the US -based research and investment company Hindonburg Research. She has moved from the post on February 28 after completing the three -year term of SEBI Chairperson.
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