The Adani Group’s shares crashed as a result of allegations made by US short-seller Hindenburg. It eventually led to the Supreme Court today appointing a six-person team of specialists to investigate the matter. Gautam Adani also mentions the SC Panel in a tweet
Veteran banker KV Kamath, former SEBI chief OP Bhat, Infosys co-founder Nandan Nilekani, attorney Somasekhar Sunderesan (whose appointment as a judge is pending with the Centre), and retired Justice JP Devdhar will all be members of the committee, which will be led by retired judge Abhay Manohar Sapre.
According to a bench chaired by Chief Justice of India DY Chandrachud, the committee will conduct an overall evaluation of the situation. It will also recommend actions to increase investor awareness, and recommend actions to reinforce current stock market regulatory procedures.
Gautam Adani Tweets about the SC Panel:
SC Orders SEBI to provide a report on the matter:
The Securities and Exchange Board of India (SEBI), the market regulator, was also ordered by the Supreme Court. Mainly to wrap up its ongoing probe and provide a status report within two months.
Further to the Adani Group shares crash, which was brought on by charges of fraud made by Hindenburg Research. The Supreme Court was considering petitions for the formation of a commission to examine measures to tighten the regulatory framework for the stock market. Also, the Supreme Court ordered SEBI to look into any rule violations and potential stock price manipulation.
In the note submitted to the Supreme Court, SEBI stated that it is looking into the claims made by a minor short-seller against the Adani Group. Also the changes in its share price. It also stated that it is not in favour of outlawing short-selling or the sale of borrowed shares. Stocks of the corporate giant Adani Group fell after Hindenburg Research published a long list of accusations against it. Including ones of illegal transactions and share price manipulation.
The Adani Group has denied the accusations, it claims that it abides by all legal and disclosure obligations.
For more news, click here.