Sebi chief questions Abraham ‘mindset’
A section of the ministry is worried that affected parties may use Sinha’s unusual letter to appeal before the Securities Appellate Tribunal (SAT) or some other appropriate body, citing his accusations about Abraham’s “state of mind.” Some of Abraham’s orders related to Jignesh Shah’s MCX Stock Exchange, Anil Ambani’s Reliance Securities Ltd and Subrata Roy’s Sahara group companies.
Sinha’s letter followed allegations by Abraham — in the latter’s June 1 letter to the Prime Minister — that some finance ministry officials were interfering with the capital market regulator’s functioning to favour some corporate houses. Abraham cited the cases of Sahara, ADAG, MCX-SX and Bank of Rajasthan, saying Sinha wanted him to go easy given the finance ministry’s “interests.”
Sinha and Abraham could not be reached for official comment.
Abraham and M S Sahoo, another Sebi member, were reportedly probed by the I-T department on purchase of a flat in Mumbai.
The opinion of lawyers specialising in capital market-related issues was divided. A partner with a legal firm said cases may not be admissible on such allegations; another top counsel said companies may consider it.