Supreme Court Expresses Concern For Investors

Two public interest litigation petitions have reached the Supreme Court in the backdrop of the Adani-Hindenburg fracas. A bench of Chief Justice DY Chandrachud and Justices PS Narasimha and JB Pardiwala heard the PILs on Friday and expressed the need for a framework to protect Indian investors.

Highlighting the Rs 10 lakh crore loss that Adani Group’s investors have suffered, the bench said that the Securities and Exchange Board of India should review whether the mechanism within the country is duly strengthened to protect the interests of investors.

Solicitor General Tushar Mehta, appearing for SEBI, responded by saying that the regulator has been continuously monitoring the situation. To which, the CJI said that the observation of the court shall not be a reflection on the duties discharged by the market regulator.

CJI DY Chandrachud, while pronouncing a short order, said that the court has indicated the concerns to the Solicitor General, regarding protection of investors and a robust regulatory mechanism. 

However, no observation of the court must be interpreted to go against SEBI or any other statutory authority, the bench clarified.

The two petitions seek a direction that charges against Adani Group must be vetted by SEBI before anything gets reported, a declaration of short selling being a fraud, and a direction to set up a special committee to oversee sanction policy for loans of over Rs 500 crore extended to big corporates.

The court will hear the matter next on Feb. 13.

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