The Supreme Court of India refused to accept the Centre’s sealed cover suggestion on a panel to strengthen regulatory measures in the stock market after Adani-Hindenburg row. The bench refused to accept the names in an envelope for ensuring transparency of the procedure to safeguard Indian investors against volatility.
On the court’s recommendation of an expert panel led by a former judge to probe the Hindenburg report, the central government had said that it doesn’t have an objection, but won’t undermine SEBI’s efficiency. It had then proposed to submit suggestions, including names of panellists, in a closed envelope.
The court had also sought inputs from SEBI and the central government, on a robust mechanism to protect investors. It had mentioned that a large number of middle class Indians also invest in the stock market, apart from high net worth individuals. The Supreme Court cited reports to mention that several lakh crores have been wiped off the wealth of share holders due to the Adani stock market rout.
After rejecting the closed envelope, the bench said that since the names need to be disclosed to the other side, the court will appoint a committee on its own. It also maintained that a sitting judge won’t be a member of the committee to examine the Hindenburg report and the Adani stock crash that followed.