SEBI Chief Madhabi Puri: Bombay High Court stays order to register FIR against former SEBI chairperson and BSE MD, other officials for ‘oversight failure’ in a 1994 listing | Mumbai News – The Times of India

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Bombay High Court stays order to register FIR against former SEBI chairperson and BSE MD, other officials for 'oversight failure' in a 1994 listing

MUMBAI: In a big relief to former Sebi chairperson Madhabi Puri Buch, Bombay Stock Exchange MD Sundararaman Ramamurthy, and four others Bombay HC on Tuesday stayed a special court order that had on Saturday directed Anti-Corruption Bureau (ACB) to register an FIR against them in an alleged wrongful 1994 listing of a company on the stock exchange and “oversight failure”.
A single Judge bench of Justice S G Dige of the HC stayed the order of special Judge SE Bangar.
Justice Dige dictating the order in open court, “it appears that the trial court judge has passed order mechanically without going into details and without attributing any role to the applicants (SEBI and BSE officials)”. He stated till the next date and adjourned the matter after four weeks
Former Sebi chairperson Buch, Bombay Stock Exchange MD Sundararaman Ramamurthy had on Monday approached Bombay HC l for quashing the special court order against them.
Terming the trial court order “unjust” and “harsh”, the officials said none of them even held the positions in 1994 and the trial court ought to have seen that “no vicarious liability can be fastened” on them.
Solicitor General of India Tushar Mehta appearing for the three whole time directors of Sebi argued for a stay saying the complaint was vexatious and vague and the complainant a habitual litigant who the HC had earlier imposed five lakhs coat on for filing a frivolous petition.
Senior counsel Amit Desai for the BSE MD said the sessions court Judge in charge of ACB cases unfortunately did not apply his mind nor seemed aware of the legal provisions governing private complaints that required prior sanction before prosecution of public servants.
Desai said “Matters of this type, one has to be very careful …when you go after the preeminent market regulator and stock exchange it has wide ramification, more in today’s times.”
Desai said, “Meticulous application of bond has to be there.”
Terming the trial court order “unjust” and “harsh”, the officials said none of them even held the positions in 1994 and the trial court ought to have seen that “no vicarious liability can be fastened” on them.



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