The central government on Monday informed the Supreme Court that SEBI is competent to handle the situation and it has agreed to constitute a committee to protect investor interests following Hindenburg’s report on Adani Group. Solicitor General Tushar Mehta informed a bench of Chief Justice D.Y. Chandrachud that SEBI is completely equipped to deal with the situation that took place due to recent report by Hindenburg.
He added that the government has no objection to appointing a committee to suggest how to ensure investors are protected in future.
However, he said that remit of committee is important since it has an effect internationally. He also said that the government will provide names in a sealed cover.
The court adjourned the hearing on two petitions related to Hindenburg report on Friday. The court asked the Centre to apprise it about the remit of the committee by the next hearing. Last week, the Supreme Court sought a response from Ministry of Finance and SEBI on how to ensure that Indian investors are protected in future against sudden volatility observing the recent crash due to the Hindenburg Research report. The court has also asked SEBI to apprise it on how to ensure that investors are protected in future. Supreme Court asked SEBI to show the existing structure and how to strengthen the regulatory framework. The bench has also suggested the need to form a committee of experts from various areas like the securities area, international financial law experts, and someone from the regulatory body led by the wise guidance of a former judge. The court has also suggested that the regulatory body could think of ways to modify statutory regulatory provisions in such a way that in the future the Indian investors could be protected.
