Court Orders FIR Against Former Sebi Chief Madhabi Puri Buch, Sebi Plans Legal Challenge

A Mumbai court has ordered the registration of an FIR against former Securities and Exchange Board of India (Sebi) Chairperson Madhabi Puri Buch, two BSE officials, and others over alleged irregularities related to the granting of listing permission to a company on the Bombay Stock Exchange (BSE) in 1994. In response, Sebi called the complaint frivolous and announced its intention to challenge the court's order through appropriate legal steps. The regulator reaffirmed its commitment to ensuring regulatory compliance in all matters.

The BSE also echoed Sebi's stance, stating that the court had allowed the application without issuing notice or granting Sebi an opportunity to present facts. The exchange emphasized its dedication to upholding regulatory compliance and transparency.

Buch's tenure as Sebi Chairperson ended on March 1, 2025, after she assumed office on March 2, 2022, becoming the first woman to lead the markets regulator. During her time at the helm, Buch faced conflict of interest allegations from Hindenburg Research, which accused her and her husband of investing in offshore entities linked to Vinod Adani, the elder brother of Adani Group chairman Gautam Adani. Buch has denied these allegations.

Despite the controversies, Buch's tenure saw several reforms, including measures to address highly volatile derivatives trading, enhanced foreign portfolio investor (FPI) disclosures, and initiatives to increase mutual fund penetration through Rs 250 SIPs. The ongoing legal battle marks a significant chapter in her leadership.

Also Read: SEBI Chief Madhabi Buch, Husband Deny Hindenburg Allegations, Terms It 'Baseless'