FIR against Buch and other officials | SEBI, BSE move Bombay HC; urgent hearing on March 4

The Securities Exchange Board of India (SEBI) and BSE have moved the Bombay High Court to challenge an Anti-Corruption Branch (ACB) Court order directing the registration of an FIR against former SEBI Chairperson Madhabi Puri Buch, along with several SEBI and BSE officials.The Bombay High Court has agreed to grant an urgent hearing on SEBI and BSE’s plea against the order.

The court has listed the plea for hearing on March 4.

Until then, it has issued oral directions restraining the registration of the FIR.

This comes after the Supreme Court had earlier stayed an ACB Court order in the matter of Cals Refineries.

SEBI’s Whole-Time Member (WTM) has filed a plea in the Bombay High Court, arguing that the lower court’s order is “manifestly erroneous, patently illegal, and without jurisdiction.” The plea states that Cals Refineries was listed in 1994, while the accused were not part of SEBI’s board at the time.(CNBC-TV18 has  accessed the plea against the ACB Court order directing FIR filed by SEBI)

The case stems from a complaint filed by journalist Sapan Srivastava. He alleged that BSE listed Cals Refineries in 1994 without ensuring compliance with SEBI’s listing regulations. The complaint claimed SEBI failed to act against BSE and Cals Refineries, leading to investor losses.The ACB Court observed prima facie evidence of “regulatory lapses” and “collusion” before ordering an FIR. It directed the Anti-Corruption Bureau, Worli, Mumbai, to investigate under the IPC, the Prevention of Corruption Act, the SEBI Act, and other applicable laws.

The court also ordered a status report within 30 days.

In a statement, SEBI said, “SEBI would be initiating appropriate legal steps to challenge this order and remains committed to ensuring due regulatory compliance in all matters.”

The regulator also pointed out that the SEBI officials named in the case were not in their respective positions when Cals Refineries was listed. SEBI further noted that the court passed the order without granting it an opportunity for a hearing.

BSE also opposed the order, calling the application for an FIR “frivolous and vexatious.” It clarified that Cals Refineries was listed in 1994 and that the officials named in the application were not in their positions at the time. BSE stated, “The court allowed the application without issuing any notice or granting an opportunity to present our case.”

BSE said it is taking necessary legal steps to challenge the order and remains committed to upholding regulatory compliance and transparency.