The court also reserved its decision on the formation of a committee to investigate the matter.
Digital Desk: The Supreme Court refused to accept the Centre's suggestion on a proposed panel of experts recommending measures to plug loopholes in the regulatory regime to prevent any loss to Indian investors due to market volatility, as witnessed during the Adani-Hindenburg episode, in a "sealed cover" decision on Friday.
The bench, which included Chief Justice D Y Chandrachud and Justices P S Narasimha and J B Pardiwala, stated that it wants to maintain full transparency in the interests of investors.
"We will not accept your sealed cover suggestion because we want full transparency," the bench stated.
The court also reserved its decision on the formation of a committee to investigate the matter. The bench stated that it will not accept suggestions from the government or petitioners on who should serve on the committee, but will instead choose experts on its own.
On Monday, the Centre had agreed to the apex court's proposal to set up a panel of experts to look into strengthening the regulatory mechanisms for the stock market in the wake of the share price crash in the Adani Group stocks, which was triggered by a report by Hindenburg Group over allegations of "stock manipulation". The Adani group, on the other hand, has denied any wrongdoing.
On the last date of hearing, the Supreme Court stated that it was "thinking aloud" about forming a committee of experts to suggest possible improvements to the regulatory mechanism.
Tushar Mehta, appearing on behalf of the Centre, told the bench that his "instructions are that the existing structure - SEBI and other agencies - are fully equipped, not only regime wise but also to take care of the situation.
However, in response to Your Lordships' suggestion, we would have no objection...the government has no objection to the formation of a committee".
Meanwhile, market regulator Securities and Exchange Board of India (SEBI) said in a note submitted to the Supreme Court that it "is already enquiring into both, the allegations made in the Hindenburg report as well as the market activity immediately preceding and following the publication of the report, to identify violations of SEBI Regulations..." including those related to short selling.
So far, lawyers M L Sharma and Vishal Tiwari, Congress leader Jaya Thakur, and activist Mukesh Kumar have filed four PILs in the Supreme Court on the subject.
Leave A Comment