Delhi High Court issues notice to SEBI, BSE and NSE
INVC, Delhi, Delhi High Court has issued notice to the Union of India, Securities and Exchange Board of India (SEBI), Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on Midas PIL for Central Bureau of Investigation (CBI) probe against SEBI and Stock Exchanges. The order was issued by bench of acting Chief Justice D. Murugesan and Justice V.K. Jain after hearing the applicants counsel Mrs. Madhumita Bhattacharjee. Bhattacharjee apprised the Hon’ble Court that individual investors money of over Rs 58,000 crore was blocked due to suspension of 1450 companies by BSE and NSE over the years. The instant writ petition states that inaction on part of SEBI- subsequent to failure of stock exchanges to initiate action against the defaulting companies -in performing its statutory duties has enabled thousands of listed companies, their promoters and directors to get away with unfair practices and violation of listing agreement terms without imposition of statutory monetary penalty and penal action. PIL further states that Small investors are the biggest losers due to such inaction. Resultantly, their estimated investment of over Rs.1,00,000 crore has been blocked and is in suspended animation for years. The number of affected small investors may be one crore. They have lost heavily and withdrawn from the securities market, severely affecting raising of money by companies for speedier development of the economy.