WE WILL CONTEST!! SEBI to Challenge Mumbai Court Order Targeting Ex-Chief Buch
SEBI, in a statement argued that the named officials—including Buch, who stepped down in February 2025 amid controversy—were not in their roles during the alleged listing.
India’s market regulator, the Securities and Exchange Board of India (SEBI), announced Sunday it will contest a Mumbai court order directing an investigation into its former chief, Madhabi Puri Buch, and other officials over alleged stock market fraud. The decision follows a special anti-corruption court’s ruling on March 1, prompted by a journalist’s petition claiming SEBI allowed a fraudulent company to list on the Bombay Stock Exchange (BSE) without meeting norms, harming investors.
SEBI, in a statement, called the order baseless, arguing the named officials—including Buch, who stepped down in February 2025 amid controversy—were not in their roles during the alleged listing. The regulator also noted the court acted without prior notice or a hearing, violating due process. The petitioner, described by SEBI as a “habitual litigant” with a history of dismissed cases, accused the regulator of lax oversight, but SEBI insists it adhered to all protocols.
The BSE echoed SEBI’s stance, labeling the petition “frivolous” and joining the legal challenge. Both entities expect the order to be overturned, citing procedural flaws and the petitioner’s track record. The court had instructed the Anti-Corruption Bureau to probe and report within 30 days, escalating tensions around SEBI’s credibility.
Buch’s tenure ended amid scrutiny after Hindenburg Research alleged in August 2024 that she and her husband held stakes in offshore entities linked to Adani Group stock manipulation—a charge she denied. SEBI’s pushback comes as it navigates fallout from that saga, with posts on X reflecting investor skepticism. Legal experts predict an appeal to the Bombay High Court, where SEBI aims to protect its regulatory integrity and quash the investigation.
