Indian court orders probe of former market regulator chief

MUMBAI: A court in India´s finance hub Mumbai has ordered an investigation into allegations of stock market fraud by the former chief markets regulator, officials and local media said on Sunday.

The anti-corruption bureau was directed to begin a probe against former Securities and Exchange Board of India (SEBI) chairperson Madhabi Puri Buch and five other officials “in connection with alleged stock market fraud and regulatory violations”, Press Trust of India (PTI) news agency reported.

The court said inaction by SEBI and other law enforcement agencies made it necessary for judicial intervention, the PTI report said. In a statement, SEBI said the “miscellaneous application” before the court alleged irregularities over the listing of a company on the Bombay Stock Exchange, India´s main stock market.

SEBI said it “would be initiating appropriate legal steps to challenge this order and remains committed to ensuring due regulatory compliance in all matters.”