SC asks Centre, SEBI to submit report on steps taken on Adani-Hindenburg row

The Supreme Court instructed the Centre and SEBI to submit a report on the regulatory regime and steps taken in the aftermath of the Hindenburg-Adani issue, setting Monday as the day for hearing the case.

The court has urged the government and SEBI to provide information by Monday on the causes of the market crash following the Hindenburg Research report, as well as suggestions on how the regulatory system may be reinforced to prevent such an event in the future.

The court directed Solicitor General Tushar Mehta to submit the note after consulting with the government and SEBI on the best course of action, and even advocated forming an expert committee to make necessary changes to the legislative and regulatory framework governing security markets.

The bench stated that because there is seamless money movement and growing middle class investment in the stock market, a strong system must be put in place to protect investors.

“The point that really bothers us is how do we protect the interest of the Indian investors,” the bench said

“Can we contemplate an expert committee that can give inputs for modifying the statutory regulations so that it doesn’t happen again?” the apex court questioned SEBI.