Adani issue: Supreme Court to hear PILs today, mull over setting up experts' panel to strengthen regulatory mechanisms
New Delhi, February 17
The Supreme Court is scheduled to hear during the day a batch of PILs on the recent Adani Group shares crash triggered by the Hindenburg Research’s fraud allegations and is likely to mull over setting up of a panel of domain experts for strengthening existing regulatory measures for stock exchanges.
The crucial hearing on the PILs by a bench headed by Chief Justice DY Chandrachud assumes significance in the wake of recent developments in which the Centre agreed to the apex court’s proposal to set up a committee, likely to be headed by a former Supreme Court judge, to look into the regulatory regimes.
Stressing that statutory bodies like market regulator Securities and Exchange Board of India (SEBI) are “fully equipped” and are on job, the central government had expressed apprehensions that any “unintentional” message to the investors that regulatory bodies in India needed a monitoring by a panel may have some adverse impact on the flow of money into the country.
The Centre had told the bench, also comprising Justices PS Narasimha and JB Pardiwala, that it wanted to provide details such as names and the scope of the panel’s mandate in a “sealed cover”.
Stock market regulator SEBI, in its note filed in the top court, had indicated it is not in favour of banning short-selling or sale of borrowed shares, and said it is investigating allegations made by a tiny short-seller against the Adani Group as well as its share price movements.
The top court on February 10 had said the interests of Indian investors needed to be protected against market volatility in the backdrop of the Adani stocks 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 mechanisms.
Till now, four PILs have been filed in the top court on the issue by lawyers ML Sharma, Vishal Tiwari, Congress leader Jaya Thakur and Mukesh Kumar, who claims to be a social activist, respectively.
