The Supreme Court on Thursday set up an expert committee headed by retired judge Justice Abhay Mohan Sapre to review the regulatory mechanism and suggest ways to protect the Indian investors from incidents such as the Hindenburg-Adani issue in future.
The Bench of Chief Justice of India (CJI) D.Y. Chandrachud, Justice P.S. Narasimha and Justice J.B. Pardiwala appointed the following persons as the members of the committee: OP Bhat, retired Justice J.P. Devdatt, Nandan Nilakeni, K.V. Kamath and Somasekharan Sundaresan.
The Apex Court further directed the Securities and Exchange Board of India (SEBI) to investigate the allegations in the Hindenburg Research report against the Adani group of companies.
SEBI was also directed to investigate whether there has been a violation of Section 19 of SEBI rules and whether there was any manipulation of stock prices.
The regulatory body was asked to file a status report on its investigation before the Court within a period of two months.
Earlier on February 17, the Apex Court had said that it would pass orders to constitute an expert committee.
The CJI observed that the decline in share price belonging to the Adani Group was precipitated by a report published by US-based short selling firm Hindenburg Research. The report had alleged that the group, headed by industrialist Gautam Adani, had manipulated and violated security laws.
The top court of the country is currently hearing three petitions related to the Hindenburg-Adani issue. The first petition was filed by Congress leader Jaya Thakur seeking investigation against the Adani Group over charges of share inflation by way of manipulations and malpractices, as alleged in a report published by US-based short-seller Hindenburg Research.
Second was filed by Vishal Tiwari seeking constitution of a committee under the chairmanship of a retired Supreme Court Judge to investigate the contents of the Hindenburg Research Report.
Third petition was filed by Advocate M.L. Sharma seeking to declare ‘short-selling’ as an offence of fraud. It further sought a probe against Nathan Anderson, founder of Hindenburg, for ‘exploiting’ innocent investors via short selling under the ‘garb’ of artificial crashing.
The post Hindenburg-Adani issue: Supreme Court constitutes 6-member Committee to review regulatory mechanism, issues notice appeared first on India Legal.
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