The Central Bureau of Investigation has arrested a DGM of SEBI and a middleman for demanding and accepting a bribe of Rs.Ten lakhs from the complainant.

It was alleged in the complaint that the complainant, a proprietor of a firm based in Ahmedabad & engaged in share trading, was barred from trading by Securities Exchange Board of India(SEBI) in September, 2011 for market manipulation using Global Depository Receipts (GDR) issues. Subsequently, investigation was initiated by the SEBI against the firm. The DGM rank official of SEBI who was conducting investigation had issued show cause notice to the firm of the complainant. Meanwhile, the complainant came in to the contact with the middleman based in Mumbai who assured to get the work done in favour of the complainant claiming close contact with the DGM rank official of SEBI. The middleman had allegedly demanded Rs. 25 lakhs from the complainant on behalf of the said official of the SEBI. The complainant also met the said official of SEBI who asked him to give the bribe amount to the middleman. The accused asked for the first instalment of bribe of Rs.10 lakhs. As the complainant did not want to pay the bribe, he lodged complaint with CBI.

CBI laid a trap and the middleman who came to Ahmedabad for taking delivery of bribe was caught red handed for demanding and accepting illegal gratification of Rs.10 lakhs on behalf of DGM, SEBI, Mumbai. Both the middleman and the DGM of SEBI were arrested.

Searches were conducted at the premises of the middleman and the GM of SEBI at Mumbai & New Delhi.

The arrested accused are being produced today in the Designated Court.

Further investigation is continuing.

CBI Press Release

New Delhi , 01.06.2012

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