Mon Mar 03 04:40:00 UTC 2025: ## Mumbai Court Orders Probe into SEBI and BSE Officials Over Alleged Fraudulent Listing

**Mumbai, India** – A Mumbai special court has ordered the Anti-Corruption Bureau (ACB) to launch a formal investigation into allegations of fraud and collusion involving former SEBI chairperson Madhabi Puri Buch, three other SEBI whole-time members, and top officials from the Bombay Stock Exchange (BSE).

The order, passed on Saturday by Special Judge S.E. Bangar, stems from a complaint filed by journalist Sapan Shrivastava. Shrivastava alleges that the accused colluded to allow the fraudulent listing of Cals Refineries Ltd. on the BSE in 1994, resulting in significant losses for investors, including himself. He claims SEBI and BSE officials failed to act against the company’s alleged wrongdoing and instead facilitated its listing, despite irregularities.

The court’s order directs the ACB to investigate Buch, along with SEBI members Ashwani Bhatia, Anant Narayan G, and Kamlesh Varshney, as well as BSE Director Sundararaman Ramamurthy and Public Interest Director Pramod Agarwal. The investigation will cover potential violations of the Indian Penal Code, the Prevention of Corruption Act, and the SEBI Act. The ACB is required to submit a report within 30 days.

Judge Bangar cited the gravity of the alleged offences and the apparent regulatory lapses and collusion as justification for the investigation under Section 156(3) of the Criminal Procedure Code. The court noted the inaction by law enforcement and SEBI itself necessitated judicial intervention. The investigation will examine whether prima facie evidence supports the claims of market manipulation and facilitation of corporate fraud.

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