A Mumbai court has mandated the Anti-Corruption Bureau (ACB) to lodge a First Information Report (FIR) against Madhabi Puri Buch, former Chairperson of the Securities and Exchange Board of India (SEBI), alongside five senior officials, in connection with alleged breaches of securities regulations and stock market malfeasance. The directive, issued by Special ACB Court Judge Shashikant Eknathrao Bangar on March 1, 2025, underscores the necessity for a comprehensive investigation into claims of regulatory oversight failures and potential collusion.
The court’s order identifies prima facie evidence of non-compliance with the SEBI Act, 1992, and associated regulations, warranting a probe under the Indian Penal Code (IPC), Prevention of Corruption Act, and pertinent securities laws. Named in the FIR alongside Buch are Sundararaman Ramamurthy, Managing Director and Chief Executive Officer of the Bombay Stock Exchange (BSE); Pramod Agarwal, former BSE Chairman and Public Interest Director; and SEBI Whole-Time Members Ashwani Bhatia, Ananth Narayan G, and Kamlesh Chandra Varshney. The court has further stipulated ongoing judicial oversight, requiring the ACB to submit a progress report within 30 days.
The case stems from a complaint filed by Sapan Shrivastava, who alleged systemic financial misconduct, including the fraudulent listing of a company on the BSE, facilitated by SEBI’s purported dereliction of statutory obligations. The complainant asserts that the implicated officials enabled market manipulation and corporate fraud by approving the listing of an entity that failed to adhere to mandated eligibility criteria. Despite repeated appeals to law enforcement and regulatory authorities, no prior action had been initiated, prompting judicial intervention under the Criminal Procedure Code (CrPC).
Buch, India’s inaugural female SEBI Chairperson, concluded her three-year term on February 28, 2025. Her tenure, marked by advancements such as expedited equity settlements, enhanced Foreign Portfolio Investor (FPI) disclosure norms, and broadened mutual fund accessibility via ₹250 Systematic Investment Plans (SIPs), was overshadowed in its final year by allegations of conflicts of interest. Notably, U.S.-based Hindenburg Research accused Buch and her husband, Dhaval Buch, of holding stakes in offshore entities allegedly linked to Vinod Adani, raising questions about impartiality in SEBI’s oversight of the Adani Group. The Buchs have refuted these claims, asserting full compliance with disclosure obligations and emphasizing that the investments predated her regulatory appointment.
The court’s directive signals a critical escalation in addressing governance and accountability within India’s financial regulatory framework, with implications for market integrity and investor confidence.