The anti-corruption wing of the Central Bureau of Investigation (CBI) here arrested a deputy general manager (DGM) of the Securities and Exchange Board of India (Sebi) today for demanding and accepting a bribe of Rs 10 lakh from a city-based trader to clear his name in a case of market manipulation.
CBI has also arrested a man allegedly working on behalf of the Sebi DGM, who was caught red-handed while accepting a bribe from the complainant.
The Sebi official is Avarjeet Singh and the middleman is city-based Ashok Mehta. “Singh was arrested from Delhi and produced before a local court there, while Mehta was produced before a magistrate in Ahmedabad after arrest,” a CBI official said, adding Singh was being brought here.
Searches have also been conducted at the premises of Mehta and Singh in Mumbai and Delhi. Both have been arrested under the Prevention of Corruption Act and further investigation is on, officials said.
The complainant is proprietor of an Ahmedabad-based firm engaged in share trading. The firm was barred from trading by Sebi in September 2011, following complaints of market manipulation using Global Depository Receipts (GDR).
Investigation has been initiated against the complainant and Singh, who works with the integrated surveillance department of Sebi. The complainant came in contact with Mehta who assured him of getting the work done, claiming he was close to Singh. Mehta allegedly demanded Rs 25 lakh from the complainant on behalf of Singh to get the work done.
Following the demand for money, the complainant approached the anti-corruption wing of CBI, which set up a trap and caught Mehta red-handed demanding and accepting Rs 10 lakh as first installment of the bribe, on behalf of Singh.