Bombay High Court Stays FIR in SEBI Ex-Chair Case

The Bombay High Court has temporarily stayed a special court's order for an FIR against former SEBI chairperson Madhabi Puri Buch and others, citing mechanical judgment. The order was related to alleged financial fraud and violations. The complainant, Sapan Shrivastava, has four weeks to respond.

The Bombay High Court has placed a four-week stay on a special court's directive to file an FIR against ex-SEBI chairperson Madhabi Puri Buch and five officials over alleged stock market fraud and regulatory breaches. Justice Shivkumar Dige deemed the court's March 1 ruling as overly procedural.

The special court's order was criticized for lacking specificity in addressing each accused's role. As a result, the High Court has paused the proceedings, giving complainant Sapan Shrivastava four weeks to submit a counter-affidavit.

The petitions, filed by Buch and other significant SEBI and BSE officials, sought annulment of the FIR order. They challenged the legitimacy of the accusations tied to a 1994 alleged fraud during a company's BSE listing.

(With inputs from agencies.)