Court directs registration of FIR on fraud complaint against former Sebi chief, BSE Chairman, top officials

Sun Mar 02 18:10:00 UTC 2025: ## Mumbai Court Orders Investigation into Stock Market Fraud Allegations Against Former SEBI Chair

**Mumbai, India** – A special court in Mumbai has ordered the Anti-Corruption Bureau (ACB) to launch a formal investigation into allegations of stock market fraud and regulatory violations against former Securities and Exchange Board of India (SEBI) chairperson Madhabi Puri Buch and five others. The order, issued on Saturday, follows a complaint filed by Dombivli resident Sapan Shrivastava, who alleges massive losses due to the fraudulent listing of Cals Refineries Ltd. in 1994.

The complaint accuses Buch, three current SEBI whole-time members, and two Bombay Stock Exchange (BSE) officials of connivance in allowing the fraudulent listing. Shrivastava claims SEBI and the BSE neglected the company’s alleged crimes and failed to protect investor interests. He further alleges that SEBI officials facilitated market manipulation and corporate fraud.

The court, citing prima facie evidence of regulatory lapses and collusion, directed the ACB to register a First Information Report (FIR) under relevant provisions of the Prevention of Corruption Act, the SEBI Act, and the Indian Penal Code. The investigation will be monitored by the court, with a status report due within 30 days.

SEBI, however, strongly disputes the allegations and the court’s order. In a press release issued on Sunday, SEBI stated that Buch and the three SEBI whole-time members were not in their respective positions at the time of the alleged offenses. The regulatory body criticized the court for passing the order without giving SEBI an opportunity to present its case and described Shrivastava as a “frivolous and habitual litigant.” SEBI has announced its intention to challenge the court’s order legally. Cals Refineries Ltd., which received listing permission in 1994, was suspended from trading in August 2017 and remains suspended to date. The unrelated information about a cricketer has been omitted as it is irrelevant to the main news.

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