Supreme Court Slams SEBI for Laxity, Says Some Officers May Be Complicit in Financial Fraud

The Supreme Court of India has sharply criticized the Securities and Exchange Board of India (SEBI) for its slow and ineffective investigation into a financial fraud case. The court called SEBI's approach "lax" and said it appeared that some SEBI officers may have been complicit with the wrongdoers.

The case involved a finance company accused of misusing funds raised through preferential allotment. SEBI took a staggering ten years to even issue a show-cause notice to the company. The court slammed SEBI for this unacceptable delay and ordered it to take action against the officers involved in the case.

This is a major blow to SEBI's reputation and raises serious questions about its ability to regulate the Indian financial markets effectively. The court's ruling is likely to embolden investors to challenge SEBI's decisions and could lead to a wave of lawsuits against the regulator.

It will be interesting to see how SEBI responds to the court's scathing criticism. The regulator has a lot of work to do to regain the trust of the public and investors.

Source: https://www.hindustantimes.com/india-news/sc-pulls-up-sebi-cautions-it-against-lethargy-101707194025615.html