Sun Mar 02 18:10:00 UTC 2025: ## Former SEBI Chair Faces FIR Over 1994 Stock Market Fraud Allegations

**Mumbai, March 2, 2025** – A special court has ordered the Anti-Corruption Bureau (ACB) to file a First Information Report (FIR) against former Securities and Exchange Board of India (SEBI) Chairperson Madhabi Puri Buch, along with current SEBI whole-time members and two Bombay Stock Exchange (BSE) officials. The charges stem from alleged stock market fraud, regulatory violations, and corruption linked to the 1994 listing of Cals Refineries Ltd.

The complaint, filed by legal reporter Sapan Shrivastava, alleges that the company’s listing was fraudulent, facilitated by regulatory lapses and collusion. Shrivastava claims SEBI officials failed to comply with statutory duties, enabling market manipulation and corporate fraud by allowing the listing of a company that did not meet prescribed norms. Cals Refineries has been suspended from trading since 2019.

The court’s order, issued by Judge Shashikant Eknathrao Bangar, stated that the allegations constitute a cognizable offense requiring investigation and that there is prima facie evidence of regulatory lapses and collusion. The ACB has been directed to investigate under relevant provisions of the Indian Penal Code, the Prevention of Corruption Act, and the SEBI Act.

SEBI and the BSE have both issued statements expressing their intent to challenge the court’s order. Both organizations claim they were not given adequate time to respond and that the officials named were not in their current positions at the time of the alleged offenses. They maintain their commitment to regulatory compliance.

The complainant, Shrivastava, alleges that despite multiple attempts to bring the matter to the attention of police and regulatory bodies, no action was taken. He accuses the accused of round-tripping, insider trading, and price manipulation, and alleges that SEBI failed to act despite several red flags. The court, however, noted that Shrivastava provided substantial material supporting his allegations. The investigation is to be monitored by the court, with a status report due within 30 days.

Read More