The Supreme Court is set to announce its decision on establishing a committee to recommend changes in the market regulatory system in order to safeguard investors following the Adani-Hindenburg controversy on Thursday.
On February 24, a three-judge bench led by Chief Justice of India D Y Chandrachud had reserved its decision on a group of public interest litigations (PILs) seeking an investigation into the allegations made by the short seller research firm Hindenburg against the Adani group for share manipulations. One of the petitions also called for an investigation into the firm and a ban on short selling.
In reserving its judgment, the court also stated that it would determine the members of the proposed committee on its own and declined to accept any suggestions from the petitioners, emphasizing the need for “full transparency”.
During the hearing on February 10, the court had proposed the formation of a committee of experts to devise a mechanism to protect investors and prevent similar incidents in the future. The government subsequently expressed no objection to the establishment of the committee.
The Securities and Exchange Board of India (SEBI) informed the court that it is already conducting an inquiry into the allegations made in the Hindenburg report and the market activity surrounding its publication to identify any violations of SEBI Regulations.
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