GOVERNMENT OF INDIA
Ministry of Finance
DEPARTMENT OF ECONOMIC AFFAIRS

 RAJYASABHA
UNSTARRED QUESTION NO. 228
TO BE ANSWERED ON AUGUST 09, 2012 / SHRAVANA 18, 1934 (SAKA)

Corruption by Staff in SEBI Question

228: SHRI RAJEEV CHANDRASEKHAR: 

Will the Minister of FINANCE be pleased to state:

(a)   whether any investigation has been conducted into the allegations of irregularity, bribery and corruption by the staff in the Securities & Exchange Board of India (SEBI);

(b)   if so, details thereof; and

(c)    if not, the reasons thereof and by when these investigations likely to be completed?

ANSWER
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI NAMO NARAIN MEENA)

 (a & b): Yes Sir.

(i)     An investigation, in terms of Regulation 86(1) of Securities and ·Exchange Board of India (Employee's Service) Regulations, 2001, is being held against Shri Jerome K Alexander, Assistant General Manager, SEBI, relating to his alleged involvement in the issuance of a forged letter in the matter of Pyramid Saimira Theatre Limited. Shri Jerome K. Alexander has been placed under suspension from April15, 2011.

(ii)   CBI, Kolkata has informed SEBI that two cases have been registered against Shri Rajesh Pratap Singh, Assistant General Manager, SEBI, for the alleged possession of disproportionate assets and alleged acceptance of bribe under section 7 of the Prevention of Corruption Act, 1988. The employee has been "placed under suspension from February 01, 2010 in terms of Regulation 74(1) and 86(1) (b) of the Securities & Exchange Board of India (Employee’s Service) Regulations, 2001.

(iii) CBI, Gandhinagar, has informed SEBI that a case has been registered against Shri Avarjeet Singh, Deputy General Manager, SEBI, for allegedly demanding illegal gratification. The employee has been placed under suspension from May 31, 2012 in terms of Regulation 74(1) and 86(1) (b) of the Securities and Exchange Board of India (Employee's Service) Regulations, 2001.

(c) The alleged involvement of Shri Jerome K. Alexander, in the matter of issuance of a forged letter is yet to be concluded by CVO, SEBI.

The alleged corruption case against Shri Avarjeet Singh is being investigated by CBI.

Anti-Corruption Bureau, CBI, Kolkat, has initiated prosecution against Shri Rajesh Pratap Singh, and filed two charge sheets against him before the Hon'ble Special Judge, CBI Court, Alipore, Kolkata.