Supreme Court hears PILs alleging exploitation and stock value manipulation by Adani Group on Friday.
On Monday, the High Court heard petitions related to the Adani stocks controversy after the Hindenburg report. The Center told the court that they have no objections to setting up a board of space experts to examine strengthening the regulatory tools for the stock market.
The focal government, in any case, told a seat headed by Boss Equity D.Y. Chandrachud that it needed to give the names of the space specialists for the board and the extent of its command in a fixed cover in bigger interest.
Unraveling the Adani Group Stock Mystery: An Explanation of Hindenburg Research and the Short Selling Process
Tushar Mehta, who appeared as the Solicitor General for both the central government and the Securities and Exchange Board of India (SEBI), assured the court that they are equipped to handle the challenges posed by the recent Hindenburg report. Furthermore, he emphasized that the market regulator and other relevant organizations have the necessary tools in place to tackle any difficulties that may arise.
He emphasized their capability to effectively deal with the current situation.
The government representative stated that they have no objections to the formation of a committee and are willing to provide suggestions and names of potential members, which they can submit in a sealed envelope. The law officer emphasized that they are open to playing an active role in the process.
Tushar Mehta expressed concern that an “unintentional” announcement about the formation of the panel could negatively impact the flow of money into the market. He warned that such a message may have unintended consequences.
The Supreme Court has scheduled two Public Interest Litigations (PILs) for a hearing on Friday. These PILs accuse the Adani Group of exploiting innocent investors and artificially manipulating the value of their stocks. The court will now hear arguments and evidence related to these allegations.(Adani-Hindenburg-SC proposal)
Adani Group Stocks: An Overview of Hindenburg Research and the Operations of Short Sellers
On February 10, the top court addressed the issue of market volatility in the context of the Adani stocks rout and emphasized the need to protect the interests of Indian investors. The court instructed the central government to consider the formation of a panel of experts, led by a retired judge, to examine ways of reinforcing regulatory mechanisms in the stock market. This move highlights the court’s commitment to ensuring the well-being of Indian investors and maintaining stability in the stock market.
The court asked for the opinions of the Securities and Exchange Board of India (SEBI) and the central government on the issue of establishing a robust mechanism for capital movement, which has become “seamless” in the country. The court wants to ensure that there are strong measures in place to manage the flow of capital, which has become increasingly interconnected in the nation. The goal is to maintain stability and protect the interests of investors in the stock market.(Adani-Hindenburg-SC proposal)