central government Ltd told the Supreme Court on Monday that it had no objections to the proposal to set up an expert committee to strengthen the stock market regulatory mechanism. The Supreme Court was hearing the matter of the Adani Group’s stock plunge after the Hindenburg Research report came out. The central government, however, told a bench headed by Chief Justice (CJI) DY Chandrachud that, in view of increased interest, it wanted to provide the names of the experts for the committee and their terms of reference in a sealed envelope. .
It will also suggest the names of the experts.
Attorney General Tushar Mehta, representing the central government and SEBI, said the market regulator and other statutory bodies are ready to deal with the situation emerging from the Hindenburg Research report. He said the government has no objection to forming the committee. But we can suggest names of experts. We can suggest the name on a sealed cover. Mehta feared that any ‘unintentional’ messages about the creation of the panel could have an adverse effect on the flow of funds. The high court has included for Friday’s hearing two public interest litigation (PIL) alleging losses to investors and artificial decline in Adani Group shares. The Supreme Court had said on February 10 that it was necessary to protect the interests of Indian investors in the context of the Adani Group’s falling stock markets. The court asked the central government to consider strengthening the regulatory mechanism by setting up a committee of experts headed by a former judge.
The Supreme Court had noticed on February 10
The Supreme Court had observed on February 10 that a strong regulatory framework was needed to protect the interests of investors and, if the Center agreed, a committee could be established to suggest regulatory reforms. The high court was hearing a petition seeking instructions to establish a committee headed by a retired high court judge to investigate the Hindenburg Research report. As a result of the research report, the Adani group company’s share prices fell and investors suffered huge losses. With respect to the Hindenburg Report on the Adani Group, lawyers Tiwari and ML Sharma have filed two separate petitions.
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