Case Law Analysis
|Bombay High Court
Only SEBI can invoke Section 26 of the SEBI Act; FIR on alleged front-running quashed for lack of SEBI complaint | Bombay HC
The Bombay High Court held that criminal prosecution under Section 26 of the SEBI Act is exclusive to SEBI, so an FIR alleging front-running cannot proceed without a formal SEBI complaint. This reinforces that special securities statutes override ordinary criminal provisions, limiting police initiation of such cases. The decision affects dealers, mutual-fund firms and any party subject to SEBI-triggered investigations.