Securities and Exchange Board of India (SEBI), in its affidavit to the top court, stated that it is well equipped to deal with the market reaction to Hindenburg Research report on the Adani Group
The Securities and Exchange Board of India (SEBI) informed the Supreme Court on Monday that it has no objection to the apex court constituting an expert committee to look into American short-seller Hindenburg's allegations against Adani Group. The central government also took a similar stand, however, adding that it would want some say in the constitution of such an expert probe committee.
Solicitor General Tushar Mehta, representing the Centre, submitted that, "Our instructions are that existing structure - SEBI and other agencies - are fully equipped not only regime wise but otherwise also, in taking care of the situation." He added that government has no objection to an expert committee looking into the matter.
Mehta stressed that the remit of the committee should be very relevant because any unintentional message to the international investors and domestic investors that even a regulator or statutory monitoring authority also needs a monitoring by a committee appointed by the Supreme Court may have some adverse impact on the flow of money.
He sought that the court could permit the government to suggest the remit of that committee with possible suggestions of names of the committee in a sealed cover, as it may not be appropriate to discuss in open court hearing.
"We suggest some names, which appeal to your lordships, may not appeal... but would be the people of some calibre or some standing in their respective fields, but the remit will be very relevant," he said.
The Supreme Court bench comprising of Chief Justice of India DY Chandrachud, Justice PS Narasimha and JB Pardiwala asked the solicitor general to inform the court about the remit of the committee by February 17. In response, Mehta assured that the government's suggestions on the committee would be circulated by Wednesday, February 15.
The apex court was hearing a plea seeking a direction to set up a committee monitored by a retired apex court judge to investigate the Hindenburg Research report, which resulted in crashing of Adani group company share prices and caused massive loss to investors. Two separate petitions have been filed by advocates Tiwari and M.L. Sharma in connection with the Hindenburg report on Adani Group.
(With inputs from IANS)