The Supreme Court on Friday sought responses from the Securities and Exchange Board of India (SEBI) and the Ministry of Finance by Monday (February 13) on petitions alleging exploitation of investors and “artificial crashing” of the Adani Group’s stock value. The court asked SEBI to apprise the court of how to ensure that investors are protected in future and show SC what is the existing structure and how to strengthen the regulatory framework, reported ANI.
A bench headed by Chief Justice D Y Chandrachud, also comprising justices P S Narasimha and J B Pardiwala, suggested forming a committee of domain experts and others, besides putting in place “robust practices to protect investors”.
The Solicitor General, appearing for the Securities and Exchange Board of India (SEBI), said the market regulator and other statutory bodies were doing the needful. To which, the court said, that it was “just thinking out loud” and not making any observation on the merits of the case as “the stock markets usually run on sentiments”, reported PTI.
The apex court then listed the two PILS on February 13.
One plea was filed by advocate Vishal Tiwari, who mentioned the matter for urgent listing before the CJI on Thursday. Tiwari has sought a direction to the Centre to constitute a committee monitored by a retired apex court judge to inquire and investigate into the Hindenburg Research report which has levelled multiple allegations against billionaire industrialist Gautam Adani.
Another PIL was filed by advocate M L Sharma seeking prosecution of the US-based short-seller firm Hindenburg Research and his associates in India and the US for allegedly exploiting innocent investors and the “artificial crashing” of Adani Group’s stock value in the market.
The ports-to-power conglomerate plunged into crisis on January 24, when Hindenburg Research made a litany of allegations, including fraudulent transactions, share-price manipulation, among others. The Adani Group stocks have taken a beating on the bourses since then.
However, the group has dismissed the allegations, calling them lies, and called the Hindenburg report a “calculated attack” on India and its institutions.
Opposition parties have come down heavily on the Centre following the report, and have demanded in the Parliament a Joint Parliament Committee (JPC) or a Supreme Court-monitored probe into the Adani Group controversy.