Government accepts SC proposal, will set up regulatory body

The Indian Supreme Court has proposed the creation of an expert committee to suggest measures to strengthen regulatory mechanisms in the wake of the Adani Group share crash that followed the Hindenburg Research report. The Centre has agreed to the proposal, however, Solicitor General Tushar Mehta has noted that SEBI and other agencies are already well equipped to handle the situation. The Centre has agreed to provide the names of experts and the panel’s mandate in a ‘sealed cover’. The bench, led by CJI DY Chandrachud, has asked Mehta to submit a note on the mandate of the expert committee by Wednesday, and the matter will be heard again on Friday.

The Adani Group has been in the news recently after the shares of its flagship company, Adani Enterprises, declined by 7% after rating firm Moody’s revised the outlook of the conglomerate’s four firms to ‘negative’ from ‘stable’. The Centre has maintained that the interests of Indian investors need to be protected against market volatility.

The Supreme Court has been hearing two Public Interest Litigations (PILs) filed by advocates Vishal Tiwari and ML Sharma, who have sought a probe into the issues related to the Hindenburg Research report. Tiwari’s PIL demanded the creation of a special committee to oversee the sanction policy for loans of over Rs. 500 crore given to big corporates, while Sharma has sought probes from the SEBI and the Ministry of Home Affairs against Hindenburg Research founder Nathan Anderson and his associates in India for its report on the Adani Group.

Solicitor General Tushar Mehta has stated that SEBI and other agencies are fully equipped to handle the situation, but the government has no objection to the creation of the expert committee. However, Mehta has also noted that the remit of the committee would be very relevant as any unintentional message to international or domestic investors that the regulatory authorities need monitoring by a committee may have an adverse impact on the flow of money.

The Adani Group has dismissed the charges made by Hindenburg Research as lies. The PILs filed by Tiwari and Sharma have raised concerns about the exploitation of innocent investors and the artificial crashing of the Adani Group’s stock value. The Supreme Court’s proposal to create an expert committee to strengthen regulatory mechanisms in the stock market is aimed at addressing these concerns and protecting Indian investors’ interests.

(Inputs from Tribune)

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