SEBI had barred an Ahmedabad-based share trading company from trading in Sept 2011 for alleged market manipulation using Global Depository Receipts (GDR) issues and initiated an enquiry against the firm.
"The DGM rank official of SEBI who was conducting investigation had issued show cause notice to the firm of the complainant. Meanwhile, the complainant came in contact with the middleman based in Mumbai who assured to get the work done in favour of the complainant, claiming close contact with the SEBI official," CBI said in a statement.
It said the middleman had allegedly demanded Rs 25 lakh from the complainant on behalf of the SEBI official.
"The complainant also met the said official of SEBI who asked him to give the bribe amount to the middleman. The accused asked for the first installment of bribe of Rs 10 lakh. As the complainant did not want to pay the bribe, he lodged a complaint with CBI," the statement said.
The agency laid a trap and the middleman who came to Ahmedabad for taking delivery of the bribe was caught while accepting illegal gratification of Rs 10 lakh on behalf of SEBI DGM, Mumbai.
The SEBI official was also arrested.
Searches were conducted at the premises of the middleman and the SEBI official at Mumbai and New Delhi. The accused were produced today in the designated court, the CBI said.