However, Hindenburg’s accusations rattled investors, with shares of listed firms of the conglomerate losing over USD 100 billion in value. The group’s founder and chairman Gautam Adani has also slipped from being the world’s third richest man to being ranked 21st now.
Expressing concerns about protecting Indian investors in the wake of Adani-Hindenburg issue, the Supreme Court on Friday sought the views of the Centre and the Securities and Exchange Board of India (SEBI) on improving the regulatory mechanism, Live Law reported.
The bench headed by Chief Justice of India DY Chandrachud also proposed the constitution of a committee to give suggestions on strengthening the regulatory framework.
The bench, which also comprised Justices PS Narasimha and JB Pardiwala, was hearing two petitions which sought a probe into the report of a US-based shortselling firm, Hindenburg Research, which accused the Adani Group of stock manipulation and accounting fraud. The conglomerate has denied the charges.
However, Hindenburg’s accusations rattled investors, with shares of listed firms of the conglomerate losing over USD 100 billion in value. The group’s founder and chairman Gautam Adani has also slipped from being the world’s third richest man to being ranked 21st now.
“This is just an open dialogue. They have brought an issue before the court. What is of concern is how do we ensure the protection of Indian investors,” CJI Chandrachud told the Solicitor General of India Tushar Mehta, who was representing the SEBI.
Also Read:MP Who Has More Than Rs 10 Crore Asset Should Donate Salary To Farmers: Varun Gandhi
“What happened here was short-selling. Probably SEBI is also doing its investigation. Please tell your officers also this is no witchhunt that we are planning to do. Suppose as a result of short-sale, the value of shares can get depressed. The purchaser then gets the benefit of the difference. If it is happening on a small scale, nobody bothers. But if it happens in a large scale, as per some reports, the total loss suffered by Indian investors go in the range of several lakhs crores of rupees. How do we ensure that going in future, we have robust mechanisms? Because today, capital is moving in and out of India seamlessly. How do we ensure in future that Indian investors are protected? Everybody is in the market now. It is said that the loss is of over ten lakh crores. How do we ensure that they are protected? How do we ensure that this does not happen in future?,” the CJI said.
Responding to the bench, the Solicitor General said that market regulator SEBI and other statutory bodies were doing the needful. The apex court has fixed the next hearing on the two PILs for February 13.
Meanwhile, SEBI is investigating Adani Group’s links to some of the investors in the conglomerate’s aborted $2.5 billion share sale, Reuters reported, amid growing concern about the US short-seller’s allegations against one of the country’s top industrial groups.
As an independent media platform, we do not take advertisements from governments and corporate houses. It is you, our readers, who have supported us on our journey to do honest and unbiased journalism. Please contribute, so that we can continue to do the same in future.
