Former SEBI chairperson gets relief from bombay High Court!
The bombay high court has stayed the order of a special court, which directed to register an FIR against former SEBI (Securities and Exchange Board of India) chief Madhabi puri Buch, some members of the board and top officials of the bombay Stock Exchange (BSE). Buch and other officials had approached the bombay high court seeking dismissal of the case. Justice Shivkumar Dige accepted the matter for immediate hearing and today stayed the proceedings in favor of Buch and other officials.
What was the whole matter?
A special court had ordered the registration of a case against former SEBI chairperson Madhabi puri Buch and five other officials on charges of fraud and regulatory violations in the stock market. The court had also said that it would monitor the investigation and sought a status report of the case within 30 days. However, SEBI has decided to challenge this order. SEBI says that the court did not give the board a chance to present its side.
While hearing the petition of Sapan Srivastava, a journalist, special court judge Shashikant Eknathrao Bangar said, "There is primary evidence of regulatory negligence and collusion in this case, which requires an impartial investigation." Let us tell you, petitioner Sapan Srivastava had demanded an investigation in this matter. The court also said that the allegations reveal a cognizable offense, for which investigation is necessary. Also, due to the inaction of law enforcement agencies and SEBI, "judicial intervention has become necessary."
What was SEBI's stand?
SEBI had said on this decision that it would "take appropriate legal steps to challenge this order." SEBI also argued that the designated officers were not in their positions at the relevant time. SEBI said, "The court approved the petition without issuing any notice to SEBI or giving it a chance to put the facts on record." SEBI also said that the petitioner is a "habitual litigant" whose previous petitions have been dismissed by the court and penalties were also imposed in some cases.
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