Sebi whole time member gets examined by CBI in relation to Saradha scam

So far CBI has examined close to 20 officials including executive directors from the market watch dog's office

A Securities and Exchange Board of India (Sebi) whole-time member appeared before the Central Bureau of Investigation (CBI) on Monday in connection with the Rs 10,000-crore Saradha chit fund scam.

This is the first time a serving member of Sebi has come under CBI scrutiny. The member was interrogated by the investigative officer of the Saradha scam, FB Karna, in Kolkata, said a person close to the development.

An email sent to Sebi did not elicit a response.

So far, CBI has examined about 20 officials, including executive directors of Sebi, to ascertain whether the regulator could have played a more proactive role in probing and unearthing the scam.

Explanations have also been sought from officials of registrar of companies (ROC) and Reserve Bank of India (RBI), said sources. This probe on regulatory authorities follows a Supreme Court observation questioning the role of regulatory authorities in curbing Ponzi schemes.   

The apex court in May had observed: “Investigation conducted so far puts a question mark on the role of regulatory authorities like Sebi, Registrar of Companies and officials of the Reserve Bank of India within whose respective jurisdictions and areas of operation the scam not only took birth but flourished unhindered.”
 

An email sent to the regulator did not elicit a response.