Mumbai Court Orders FIR Against Ex-SEBI Chief Madhabi Buch Over Stock Market Fraud Allegations
Mumbai, March 02, 2025 – A special Anti-Corruption Bureau (ACB) court in Mumbai has ordered the registration of an FIR against former Securities and Exchange Board of India (SEBI) Chairperson Madhabi Puri Buch and five other officials. The directive, issued on Saturday, stems from accusations of stock market fraud, regulatory violations, and corruption tied to the listing of a company on the Bombay Stock Exchange (BSE). The court has tasked the ACB Worli, Mumbai Region, with investigating and submitting a status report within 30 days.
The case began with a complaint from a Thane-based journalist, Sapan Shrivastava, who alleged large-scale financial misconduct. He claimed SEBI officials, including Buch, allowed a company to list on the stock exchange despite failing to meet required norms under the SEBI Act, 1992. This, he argued, enabled market manipulation and corporate fraud, causing significant losses to investors. The court found “prima facie evidence of regulatory lapses and collusion,” labeling the allegations as a “cognizable offence” that demands a thorough probe.
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Madhabi Buch, India’s first woman SEBI chief, ended her three-year tenure on February 28, 2025, just a day before the court’s order. Her time at SEBI included notable reforms like faster equity settlements and the introduction of ₹250 SIPs to boost mutual fund use. However, her final year was marred by controversy. In August 2024, US-based Hindenburg Research accused Buch and her husband, Dhaval Buch, of holding stakes in offshore funds linked to the Adani Group, raising conflict-of-interest concerns over SEBI’s Adani probe. The couple denied the claims, stating the investments predated her SEBI role and met disclosure rules.
The court highlighted SEBI’s inaction despite multiple complaints, prompting judicial intervention under the Criminal Procedure Code (CrPC). The FIR will be filed under the Indian Penal Code, Prevention of Corruption Act, and SEBI Act. Alongside Buch, the accused include SEBI whole-time members and BSE officials like Chairman Pramod Agarwal.
This development has reignited debates about transparency in India’s financial regulatory system. As the ACB begins its investigation, investors and the public await answers in a case that could reshape trust in the country’s stock market oversight.
