Ashish Ranjan
Adani Hindenburg row: SC asks Sebi to submit probe report within 2 monthsThursday, the Supreme Court ordered the Securities and Exchange Board of India (Sebi) to complete its investigation into the Adani-Hindenburg case and submit a report within two months.
Noting that Sebi is already investigating both the Hindenburg report and the allegations made against the Adani Group in it, the bench led by CJI DY Chandrachud stated that Sebi must investigate additional aspects of the case.
On Adani Hindenburg row the bench stated that Sebi must investigate violations and manipulations of stock pricing.In addition, the highest court established an expert committee to assess the existing regulatory framework for the stock market. It appointed Retired Justice AM Sapre as the committee’s chair and the following individuals as committee members: OP Bhatt, Justice KP Devdatt, KV Kamat, Nandan Nilekani and Somasekhar Sundaresan.
The apex court stated on 10 February that the interests of Indian investors must be safeguarded against market volatility in the wake of the Adani Group stock crash, and requested that the Centre consider establishing a panel of domain experts led by a former judge to examine the regulatory mechanism.
During a hearing held on February 17, the central government expressed concern that any unintended message to investors that regulatory bodies in India required oversight by a commission could have a negative effect on the flow of capital into the country.
Hindenburg Research, a short-seller firm based in the United States, has levelled numerous allegations, including fraudulent transactions and share-price manipulation, against the business conglomerate Adani Group. The Adani Group has rejected the allegations as false, stating that it complies with all applicable laws and disclosure requirements.
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What expert pannel will be doing
The Committee’s mandate will include:
- Provide a comprehensive analysis of the situation, including the causes and factors that led to recent market volatility.
- Suggestions for enhancing investor awareness
- Investigate whether there was regulatory failure in addressing alleged violations of securities market laws by the Adani Group and other companies.
- To recommend measures to strengthen the legal and regulatory framework and ensure compliance with the extant framework for investor protection.
- The court has ordered the Sebi chairman to ensure that the committee receives all necessary information.
- The committee has requested cooperation from all agencies of the Union government, including agencies involved in financial regulation, fiscal agencies, and law enforcement agencies. The committee is permitted to consult with outside experts.
