The ACB Court was hearing a complaint filed by journalist Sapan Srivastava, who alleged that BSE listed Cals Refineries in 1994 without ensuring compliance with SEBI’s listing regulations. The complaint further claimed that SEBI failed to act against BSE and Cals Refineries, leading to a loss of investor wealth.
SEBI has stated that it will challenge the order. 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.”
Further, the regulator also pointed out that the SEBI officials sought to be investigated were not holding these positions at the time of the listing of Cals Refineries. It further pointed out that the court ordered an FIR without granting the market regulator an opportunity for a hearing.
SEBI further cited how the complainant – Sapan Srivastava – is a “frivolous and habitual litigant” who has been fined by courts on various occasions.
In its order, the ACB Court held, “Considering the gravity of allegations, applicable laws, and settled legal precedents, this Court deems it appropriate to direct an investigation under Section 156(3) Cr.P.C. The concerned Anti-Corruption Bureau, Worli, Mumbai Region, Mumbai, is directed to register an FIR under the relevant provisions of IPC, the Prevention of Corruption Act, the SEBI Act, and other applicable laws.”
The Court has also directed a status report to be filed in 30 days.
The Court has directed an FIR against Madhabi P. Buch, Ashwani Bhatia, Ananth Narayan, Kamlesh Chandra Varshney, Pramod Agarwal, and Sundararaman Ramamurthy.
ALSO READ: Ajay Seth Takes Additional Charge as Revenue Secretary as Tuhin Kanta Pandey Moves to SEBI
(Edited by : Anand Singha)
