THE SUPREME Court will pronounce its order on constituting a committee to suggest changes in the market regulatory mechanism so as to protect investors in the wake of the Adani-Hindenburg affair on Thursday.
A three-judge bench presided by Chief Justice of India D Y Chandrachud had reserved its order on February 24 on a batch of PILs which sought a probe into the report by the short seller research firm Hindenburg accusing the Adani group of share manipulations. One of the petitions also sought a probe against the firm and to ban short selling.
Reserving its verdict, the court also said that it will decide on its own who should be members of a committee that it proposed to set up to look into the matter and recommend measures to strengthen the regulatory mechanism so as to save Indian investors from the kind of market fluctuations that was witnessed when the report was published. It refused to accept any suggestions on names from the petitioners as well. The court said this was to ensure “full transparency”.
Hearing it on February 10, the court had suggested setting up a committee of experts to suggest a mechanism such that investors are protected and such instances do not happen in the future. Subsequently, the Centre said it had no objection to the setting up of the committee.
Market regulator SEBI told the court that it “is already enquiring into both, the allegations made in the Hindenburg report as well as the market activity immediately preceding and post the publication of the report, to identify violations of SEBI Regulations…”.