Supreme Court on Thursday said it has set up a six-member panel to look into regulatory mechanisms to protect investors’ interest after a report by a U.S. short seller on the Adani conglomerate led to large investor losses
The apex court directed market regulator SEBI to investigate whether there has been a violation of Section 19 of SEBI rules and whether there was any manipulation of stock prices.
The apex court has also directed SEBI to conduct the investigation within 2 months and submit a status report. SC sets up expert committee on the issue arising out of the Hindenburg report. Retd judge Justice AM Sapre will head the committee. The other members of the committee are Nandan Nilekani, KV Kamath, Somasekharan Sundaresan former judges OP Bhat, JP Devdatt are also part of six-member probe committee.
A bench of Chief Justice D Y Chandrachud and Justices P S Narasimha and J B Pardiwala said the panel will make an overall assessment of situation, suggest measures to make investors aware and strengthening of existing regulatory measures for stock markets.
The bench also directed the Centre, financial statutory bodies and the SEBI chairperson to render all cooperation to the panel which will have to submit its report within two months.
While reserving its order, the top court on February 17 had refused to accept in a sealed cover the Centre’s suggestion on a proposed panel of experts.
Till now four PILs have been filed in the top court on the issue by lawyers M L Sharma, Vishal Tiwari, Congress leader Jaya Thakur and Mukesh Kumar, who claims to be a social activist.
Indian markets regulator SEBI has been investigating the critical Jan. 24 report by Hindenburg Research that alleged the Adani group improperly used offshore tax havens and manipulated stocks, allegations the conglomerate has denied.
