Mumbai - The Bombay High Court has scheduled a hearing for tomorrow, March 4, regarding the Securities and Exchange Board of India (SEBI) and Bombay Stock Exchange’s (BSE) appeal.
The case, which was escalated to the higher court earlier today, involves a challenge against an order issued by an Anti-Corruption Bureau (ACB) court in Mumbai. The ACB court's order pertains to allegations of irregularities surrounding the 1994 listing of Cals Refineries on the BSE and involves former SEBI chairperson Madhabi Puri Buch and five others.
The court has also issued an oral direction prohibiting all parties involved from taking any action until the hearing takes place.
SEBI and BSE have moved the case to the Bombay High Court in response to a complaint filed by an applicant who alleges procedural misconduct in the 1994 listing of Cals Refineries. The complaint names three current SEBI members and two BSE officials, alongside Buch.
In its defense, SEBI has argued that the applicant is a habitual litigant, referencing previous applications that were dismissed with costs. Additionally, SEBI contends that the officials named in the application were not in their respective positions at the time of the 1994 listing.
Similarly, BSE has clarified that the officials named in the application were not involved in the 1994 listing process and had no connection with Cals Refineries. The BSE further described the application as frivolous and vexatious, asserting that the officials had no involvement with the company at the time.
The core of the dispute centers around allegations of misconduct in the approval of Cals Refineries' listing. A special Mumbai court had previously issued an FIR against Buch following accusations of stock market fraud and regulatory violations. The complaint, filed by a media reporter, alleges that SEBI officials failed in their duties, facilitated market manipulation, and allowed the listing of Cals Refineries despite the company not meeting the necessary regulatory requirements.
In addition to these allegations, Buch had previously faced conflict-of-interest accusations from the US-based short-seller Hindenburg, which claimed she and her husband, Dhaval Buch, had investments in offshore entities linked to Vinod Adani, the elder brother of Adani Group founder Gautam Adani.
The legal development has brought increased scrutiny to the regulatory actions surrounding Cals Refineries' 1994 listing and SEBI's role in overseeing the process.