The Supreme Court recently directed market regulator SEBI (Securities and Exchange Board of India) to complete its probe in the Adani-Hindenburg case and submit the report within 2 months.
Noting that SEBI has already been into both the Hindernburg report and alleged against the raising Adani Group in it. The bench led by CJI DY Chandrachud stating that various other aspects of the case must be investigated by the regulatory body.
The bench stated that “Sebi must investigate if there has been violation and manipulation of stock pricing.”
The Apex court also set up an expert committee to review the extant framework of the stock market’s regulatory mechanism. It appointed Retd. Justice AM Sapre to head the committee and the following persons as members: OP Bhatt, Justice KP Devdatt, KV Kamat, Nandan Nilekani, and Somasekhar Sundaresan.
The Apex court on February 10 stated that the interests of Indian investors need to be protected against market volatility in the backdrop of the Adani Group stock rout and asked the Centre to consider setting up a panel of domain experts headed by a former judge to look into strengthening the regulatory mechanism.
During a hearing on February 17, the Central Government expressed apprehension that any unintentional message to the investors that regulatory bodies in India need monitoring by a panel may have an adverse impact on the country on the flow of money.
The Adani Group stocks have taken a beating on the bourses after US-based short seller firm Hindenburg Research made a litany of allegations, including fraudulent transactions and sharing price manipulation, against the business conglomerate.
The Adani Group has dismissed the charges as lies, saying it complies with all laws and disclosure requirements.
