November 2nd, 2011
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SEBI under corporate threat, PM takes no action

sebi under threat New Delhi: Dr K M Abraham, a whole time member on board of Securities and Exchange Board of India who has been on deputation from the Indian administrative Service (Kerala) send an unusual letter to the Prime Minister Mr Manmohan Singh on June 2011. Dr Abraham has tried to bring to the notice of the Prime minister the malaise that is setting into SEBI.

He also claims that he has been harassed and intimidated while he was attempting to discharge his duties. The most significant claim is that he stated that he has reasons to believe that  the insidious attempts are orchestrated from the office of the Union Minister for Finance and many such matters are happening with the consent and the knowledge of the Union finance Minister.

In his letter, he stated that, while supervising the investigation and surveillance functions in the securities markets as the whole time member of SEBI he realized that  securities market in India is still fragile and susceptible to corruption. Though it has been several months no action has been taken by the Prime Ministers Office.

Dr K M Abraham has been in charge of the departments for primary market, secondary market investigation and surveillance department has made some very shocking revelations that requires immediate attention. According to him several attempts are being made by powerful  groups to misappropriate wealth both at an individual level and at a corporate level. Such powerful individuals and groups are exploiting this fragile ecosystem.

According to him the share regulatory institution is under duress and under severe attack from powerful corporate interests, operating to undermine SEBI. He said he has been handling enforcement cases against Sahara Group, Reliance Industries and ADAG companies, Bank of Rajasthan and Stock Exchange which are very sensitive cases.

According to Abraham, Chairman of SEBI has been under immense pressure and has not been able to communicate to the forces bearing down on him. He states that on many occasions though the Finance minister has been interested in bringing about positive changes  the “lady”  Omita Paul, advisor to the Union Finance Minister  is controlling the Minister and all things are being done at her instance. The Chairman of SEBI is said to have felt that Shri Bimal Julka the additional Secretary DEA was the ‘schemer’ and Thomas Mathew Joint secretary as the ‘executor’. He has reasons to believe that these people are behind this  paln of personally harassing him.


The full text of his letter to the Prime Minister is given below

SEBI letter to PM

SEBI under corporate threat- full documents leaked

SEBI under corporate threat- complete documents recieved under RTI












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