On February 10, the Supreme Court made note of the fact that investors in the Adani Group experienced losses as a result of the report by short-seller Hindenburg Research and emphasised the necessity of protecting investors. The Securities and Exchange Board of India (SEBI) was asked to suggest measures to ensure the protection of Indian investors following the short selling report on the Adani Group while the two public interest litigations (PILs) seeking a court-monitored investigation were being heard by an apex court bench led by Chief Justice of India DY Chandrachud and Justices PS Narasimha and JB Pardiwala.
“According to reports, Indian investors have lost a combined several lakh crores. How do we make sure they’re safe? It’s supposed to cost 10 lakh billions. How can we make sure that this doesn’t happen again? What function SEBI should have in the future, “Bar and Bench cited what the CJI said.
The bench then instructed the market regulator to provide a response outlining how a more reliable procedure can be implemented. The response may include the current regulatory framework, pertinent cause elements, and the requirement for implementing strong mechanisms to protect investors. If the union is willing to accept the suggestion, the committee may make the appropriate recommendation. The SG may submit a brief note on the legal and factual matrix by next Monday, “The Court order was cited in the legal daily.
Following this, the bench advised creating an expert committee and giving SEBI more authority.
/”You can explain the current setup, how to reinforce it, and whether or not we should think about forming an expert committee with qualified members. Experts can include those with knowledge of securities, a former judge’s sage advice, specialists in international financial law, etc. We can expand SEBI’s responsibilities, and SEBI can examine its current authority and see how it might be enhanced if capital flows become more smooth “The bench was added as stating in Bar and Bench. The Supreme Court has set a hearing date of February 13 for two PILs that ask for investigations into the Adani Group’s Hindenburg report.
Earlier, Attorney Manohar Lal Sharma petitioned the Supreme Court in a public interest litigation (PIL) case to direct SEBI and the Union Home Ministry to investigate Nathan Anderson, the founder of Hindenburg Research.
In the second PIL, Advocate Vishal Tiwari demanded that a committee led by a former judge of the Supreme Court conduct an investigation into the Hindenburg report. In the meantime, Gautam Adani has hired Wachtell Lipton, one of the priciest law firms in the US, to fight back against American short-seller Hindenburg Research, which has accused the group of fraud and market manipulation.
