Hindenburg-Adani row: Centre agrees to committee set up by SC to strengthen regulatory regime
The Centre on Monday agreed to a committee to be set up by the Supreme Court for strengthening the regulatory regime
The Centre on Monday agreed to a committee to be set up by the Supreme Court for strengthening the regulatory regime following the Hindenburg-Adani episode.
It, however, added that the remit of the panel has to be very specific so that it doesn't affect the flow of money and investments.
During a hearing, Solicitor General Tushar Mehta said the government has no objection to appointing a committee to suggest how to ensure investors are protected in future and that the SEBI is competent to deal with the situation.
The Supreme Court asked the Centre to submit a note on the proposed terms of reference by Wednesday. The next hearing will be on Friday.
On Friday, the apex court had implored the government to put in place a “robust framework” by amending laws and strengthening supervisory control in order to protect thousands of investors who have been hit after a report by US firm Hindenburg Research accused the Adani Group of fraud, leading to a massive slide in its stocks.
Dealing with two public interest litigations (PIL) that highlighted how the shares of the listed firms of the Adani Group lost a record $120 billion (close to 50 per cent of value) within a matter of days, and led to massive losses to investors, a bench headed by Chief Justice of India (CJI) Dhananjaya Y Chandrachud proposed the constitution of an expert committee under the supervision of a retired judge to formulate the way forward.