AHMEDABAD, March 23: A senior IPS officer from Gujarat is learnt to have come under the scanner for his alleged involvement in a stock market fraud & raids were conducted by the stock regulator at his native residence in Sabarkantha district.
It said a special team from the Securities and Exchange Board of India is leading the probe, focusing on the officer's financial transactions, bank accounts and properties. His wife, brother-in-law, and father, a retired IPS officer have also been questioned.
A show cause notice was sent in Jan 2024 to multiple entities, including the IPS officer, accusing them of fraudulent trading practices. Sebi sought explanations on why penalties, including disgorgement of wrongful gains, should not be imposed.
While the proceedings were going on, the officer submitted a settlement application in Feb 2024, seeking to resolve the case without admitting or denying Sebi's findings.
After discussions with Sebi's internal committee, a settlement was reached in which he agreed to pay Rs 72.8 lakh as a settlement amount and Rs 1.9 crore as disgorgement.
He also accepted a voluntary six-month ban from the securities market. Sebi's high-powered advisory committee recommended the settlement.
A settlement order issued on Feb 27, 2025, confirmed that the officer had made the required payments.
However, Sebi retains the right to reopen proceedings if any discrepancies or non-compliance with settlement conditions arise.
With Sebi's probe still underway, central agencies are now examining the officer's broader financial dealings, including his investments and possible links to other market entities.
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