Context:
The Securities and Exchange Board of India (SEBI) has expressed that it will now appeal an injunction of the Higher Court directing the police in the alleged listing irregularities regarding a company’s BSE listing in 1994.
Court Order & Allegations
- The Anti Corruption Bureau Court in Mumbai issued the order following an unrelated miscellaneous application.
- The institution’s focus is on former SEBI chairperson Madhabi Puri Buch, three current whole time members, and two BSE officials.
- The complaints levelled against the accused have to do mostly with irregularity in granting listing permission almost 30 years ago.
SEBI’s Response & Legal Stance
- No Due Process
- SEBI claims that the court robed without notice to it and without giving an opportunity to be heard in the matter.
- Doubtful Applicant
- SEBI calls the complainant a frivolous and habitual litigant; they are in the know that similar matters of previous applications being dismissed.
- Officials Not in Position at That Time
- SEBI notes that the named officials were not in their current positions when the alleged battery of irregularities occurred.
Legal Route & Proceeding Forward
- SEBI would want to challenge the court injunction through legal proceedings.
- The matter shall see action at higher judicial fora for being dismissed, which SEBI views as without any merit whatsoever.
The dispute underscores concerns about regulatory oversight that has occurred in the bygones, but at the same time stands to show SEBI’s strong position against what it sees as a legally flawed decision. The implications of this ruling could also set precedents for the smattering of similar allegations in the financial regulatory environment in India.
Source: BS
