Stock market fraud: Court directs case to be filed against former SEBI chief Madhabi Puri Buch.

Anti-Corruption Court Orders Case Against Former SEBI Chief Madhabi Buch and Four Others in Stock Market Fraud

A special anti-corruption court has directed that a case be registered against former SEBI (Securities and Exchange Board of India) chairperson Madhabi Buch and four others in connection with a stock market fraud. The Mumbai Police have been instructed to submit an investigation report within 30 days.

The court will directly monitor the progress of the investigation. The directive to register a case was issued after the court found prima facie evidence of negligence and conspiracy in the discharge of duties. The court order came in response to a petition filed by a journalist seeking an investigation into the stock market fraud.

However, SEBI has responded by stating that the court acted on a ‘frivolous’ petition and that they were not given a chance to present their side. SEBI has also announced that it will challenge the order legally.

Along with Madhabi Buch, the court has directed action against Sundararaman Ramamurthy, Managing Director and CEO of BSE; Pramod Agarwal, former Chairman and Public Interest Director of BSE; and SEBI’s three full-time members—Ashwani Bhatia, Ananth Narayan G, and Kamlesh Chandra Varshney.