Madhabi Puri Buch / FIR will be filed against former SEBI chief, accused of fraud in stock market

Madhabi Puri Buch: Mumbai's Special Anti-Corruption Bureau (ACB) Court has ordered the registration of an FIR against former Securities and Exchange Board of India (SEBI) chief Madhavi Puri Buch and five other persons on charges of alleged stock market fraud and regulatory violations. The court has directed to monitor the investigation of the matter and submit a status report within 30 days.

What is the whole matter?

US research firm Hindenburg released a report in late 2024 claiming that former SEBI chief Madhavi Puri Buch and her husband had stakes in Adani Group's foreign funds. The report also alleged that there was collusion between Adani Group and SEBI, which led to violation of regulatory provisions. After the report came out, there was a lot of stir in financial and political circles.

Reaction to the allegations

Madhavi Puri Buch and her husband categorically rejected the allegations in the Hindenburg report. He said that these allegations are completely baseless and he has not hidden any information. At the same time, Adani Group also called this report false and termed it a conspiracy to defame.

Internal dissatisfaction in SEBI

This is not the first time that Madhavi Puri Buch has been embroiled in controversies. In September 2024, about 500 employees of SEBI sent a letter to the Ministry of Finance complaining that the work environment of SEBI is extremely stressful and toxic. The complaint alleged that Buch often shouted in meetings, scolded employees and humiliated them publicly.

Court order and investigation process

The special court said that the allegations indicate a cognizable offence, which requires investigation. The court said that judicial intervention was needed in view of the inaction of SEBI and other law enforcement agencies. The court directed ACB Worli, Mumbai to register an FIR under the Indian Penal Code (IPC), Prevention of Corruption Act, SEBI Act and other applicable laws.

Fraudulent listing of company

The complainant alleged that a fraudulent listing of a company was done on the stock exchange in connivance with SEBI officials. He claimed that the market was manipulated by violating regulatory standards and non-compliant companies were allowed to be listed. According to the complainant, no action was taken despite repeatedly contacting the police and regulatory agencies.

Conclusion

Madhavi Puri Buch, who was India's first woman SEBI chief, is now embroiled in legal controversies. Serious questions have been raised about her tenure since the Hindenburg report. A detailed investigation is now expected in this matter after the order given by the court. The status report in the coming 30 days will make it clear how much truth is there in the allegations and what further steps will be taken in this matter.