Centre told Supreme Court on Monday that it has no problem with setting up an expert panel to avoid Adani Group-like market volatility.
On Friday, the apex court had sought the views of the Securities and Exchange Board of India (SEBI) and the Centre as to how to ensure putting a robust mechanism in place since the capital movement now is “seamless” in the country.
“We would not like to undermine the competence of the agencies, including the regulator,” Centre said.
“We can submit some names in a sealed cover,” said Solicitor General Tushar Mehta representing Centre.
Noting that the stock market is not the place where only high value investors invest, the court said on Friday that with the changing financial and tax regime the investments are being made by “the wide spectrum of middle class”. It noted that as per some reports the total loss suffered by Indian investors due to the recent Adani stocks rout was in the range of several lakh crores of rupees.
One PIL filed by lawyer Vishal Tiwari sought a direction to the Centre to constitute a committee monitored by a retired apex court judge to inquire into the Hindenburg Research report which has made a slew of allegations against the business conglomerate led by industrialist Gautam Adani.
Another PIL filed by advocate M L Sharma sought prosecution of short-seller Nathan Anderson of the US-based Hindenburg Research and his associates in India and the US for allegedly exploiting innocent investors and the ”artificial crashing” of the Adani Group’s stock value in the market.
Adani Group stocks have taken a beating on the bourses after the Hindenburg Research made a litany of allegations, including fraudulent transactions and share-price manipulation, against the business conglomerate.
The Adani Group has dismissed the charges as lies, saying it complies with all laws and disclosure requirements.