Sebi to challenge court order on alleged listing permission irregularities

ACB Court directs filing of FIR against former chairperson Buch, three current WTMs

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The Securities and Exchange Board of India (Sebi) on Sunday said it will initiate legal action against a recent court order directing the police to investigate alleged irregularities in granting listing permission to a company on the BSE (formerly Bombay Stock Exchange) in 1994.

 

The order was issued by the Anti-Corruption Bureau (ACB) Court in Mumbai following a miscellaneous application filed against the former chairperson of Sebi, Madhabi Puri Buch, three current whole-time members (WTMs) of Sebi, and two BSE officials.

 

“Even though these officials were not holding their respective positions at the relevant point of time, the court allowed the application without issuing any notice or granting any opportunity to Sebi to place the facts on record. The applicant is known to be a frivolous and habitual litigant, with previous applications being dismissed by the court, with imposition of costs in some cases,” Sebi said in a statement. 

In a separate statement BSE said "The application is frivolous and vexatious in nature. The Honourable Court has allowed the application without issuing any notice or granting any opportunity to BSE to place the facts on record. BSE is initiating necessary and appropriate legal steps in this regard." 

 

The application by litigant Sapan Shrivastava has alleged fraudulent listing of a company on the stock exchange with the active connivance of regulatory authorities.