Hindenburg row: SC seeks views of Centre, SEBI on mechanism to protect investors' interest
Hindenburg row: The bench, 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”.
FollowThe Supreme Court said on Friday that there should be a strong mechanism in place to protect the interests of Indian investors in the stock market. The court also requested the Centre and market regulator SEBI's opinions on PILs that claim innocent investors have been taken advantage of and that the stock value of the Adani Group has been "artificially crashed."
The Finance Ministry and others were consulted by a bench led by Chief Justice D Y Chandrachud on a number of matters, including how to strengthen the regulatory framework to safeguard investors' interests in a market where smooth capital movement is the norm today.
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The bench, which was made up of justices P S Narasimha and J B Pardiwala as well, advised creating a committee of subject matter experts as well as other measures in addition to establishing "strong policies to safeguard 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.
The court stated that it was "simply thinking out loud" and not commenting on the case's merits because "the stock markets typically operate on feelings."
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The two PILs were subsequently scheduled for hearing on February 13 and asked for a number of reliefs, including an investigation of the Hindenburg Report. One of the PILs, submitted by attorney Vishal Tiwari, asked the Centre to establish a committee under the supervision of a retired judge of the Supreme Court to look into and investigate the allegations made against the industrialist Gautam Adani's business conglomerate in the Hindenburg Research report.
In another PIL, filed by attorney M. L. Sharma, it is alleged that short-seller Nathan Anderson of the US-based Hindenburg Research and his friends in India and the US exploited naive investors and caused the market value of the Adani Group's shares to "artificially plummet."
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After Hindenburg Research levelled a slew of accusations against the business behemoth, including illegal transactions and share-price manipulation, Adani Group equities have suffered on the stock exchanges. The Adani Group has denied the accusations, claiming that it abides by all legal and transparency obligations. The Adani Group has denied the accusations, claiming that it abides by all legal and transparency obligations.
(With PTI inputs)
