Supreme Court on Friday began hearing a plea seeking an inquiry into the Hindenburg Research report on the Adani Group by a committee headed by a retired judge of the apex court.
A three-judge bench headed by Chief Justice of India D Y Chandrachud began hearing the case. They are hearing a petition filed by advocates Vishal Tiwary and M L Sharma.
Solicitor General Tushar Mehta, appearing for Securities and Exchange Board of India (SEBI), informed the apex court that the market regulator is “on top of the matter”.
Supreme Court asked the market regulator how to ensure protection of Indian investors after short selling report on Adani. Supreme Court noted investors suffered losses after the US short seller’s report on Adani Group and said investors need to be safeguarded.
The apex court asked the Solicitor General to come back on Monday with suggestions on what can be done to strengthen the existing equity investing regime.
“You need not tell us what the deficiencies are but tell us where things can be done,” the court told SEBI.
“Stock market is not a place where only high value investors invest. With changing tax regimes investments are made by a whole lot of people. Perhaps you can also have a word with Ministry of Finance and experts on finance,” the court noted.
Chandrachud asked SEBI on how the existing regime can be strengthened.
Can we contemplate having an expert committee, possibly from banking, investment area, headed maybe by a wise guiding force in form of a retired judge. We are thinking aloud, the Solicitor General may suggest,” said CJI Chandrachud.
The business conglomerate, founded by Gautam Adani, has lost more than $110 billion in market value after a scathing report by a US short seller on January 24.
Hindenburg Research accused Adani Group of improper use of offshore tax havens and stock manipulation. Adani has denied the charges. Last week, the group’s flagship entity Adani Enterprises withdrew its secondary share offering, India’s largest ever, because of the sharp selloff.