Adani-Hindenburg dispute: Supreme Court worried, said, how do we protect the interests of Indian investors? Answer sought from SEBI
Adani-Hindenburg controversy: The Supreme Court today heard a plea seeking direction to set up a committee under the supervision of a retired Supreme Court judge to probe the Hindenburg Research report. And expressed concern over the actions of SEBI.
The Supreme Court on Friday said a strong regulatory framework is needed to protect the interests of investors and if the Center agrees, a committee can be set up to suggest regulatory reforms. The Supreme Court said this while hearing a petition seeking direction to set up a committee under the supervision of a retired Supreme Court judge to investigate the Hindenburg Research Report. Due to the report, the share prices of the Adani Group company fell and small investors suffered huge losses. During the hearing of the petition, the bench said that what really bothers us is how we protect the interest of Indian investors. In its order, a bench comprising Chief Justice DY Chandrachud, Justices PS Narasimha and JB Pardiwala said that the court has indicated to Solicitor General Tushar Mehta, representing SEBI, that it has a view to duly strengthen the regulatory mechanism within the country. The concern is to protect Indian investors from the sudden volatility that has been witnessed in recent weeks.
The Supreme Court bench said that SEBI's response may include relevant factors and there is a need to put in place a robust mechanism to protect investors. The Supreme Court further said that, if the Center is ready to accept the suggestion, necessary recommendations of the committee may be made and a brief note on the legal and factual matrix by the Solicitor General may be filed by Monday.
Solicitor General Tushar Mehta assured the Supreme Court that SEBI is closely monitoring the situation in the wake of the Hindenburg Report. After hearing the arguments, the Supreme Court, while fixing the hearing on Monday, asked SEBI to respond on the regulatory regime and steps taken in the wake of the Hindenburg Report controversy. Advocates Vishal Tiwari and ML Sharma have filed two separate petitions in connection with the Hindenburg controversy.