Monday, May 25th, 2020

CBI arrests a promoter of two private companies and conducts searches at nine places in an on-going investigation of a case

logo-cbi,cbi-logoINVC NEWS New Delhi,

The Central Bureau of Investigation has today arrested a promoter of two private companies and conducted searches at 9 places in Mumbai, including the residence & office premises of said Promoter of Mumbai based two private companies; then Executive Director, SEBI and others in an on-going investigation of a case. Incriminating documents, including transfer of shares by private companies, FDR, purchase of assets etc., recovered during searches are being scrutinized for further investigation. This case was registered U/s 120 B of IPC read with Section 420 of IPC & Section 13(2) read with 13(1)(d) of Prevention of Corruption Act, 1988 against the Promoter of Mumbai based private company; four then SEBI officials and others on the allegations of connivance of the SEBI officials with private company/stock exchange (MCX-SX) of Mumbai in fraudulently allowing renewal of recognition of said company/stock exchange to conduct trade in currency derivatives in 2009-2010. It was further alleged that the said private company/stock exchange had dishonestly entered into a buyback arrangement with some financial institutions in violation of the Securities Contract Regulation Act, 1956 and other rules & regulations and deliberately suppressed this material fact while applying for extension of its recognition to operate in currency derivative. The SEBI allegedly rejected the request of private company/stock exchange for trading in other segments in 2010, but renewed the registration granted to said company/stock exchange even though it was not compliant to SEBI MIMPS Regulations. Further investigation is continuing.



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