Adani-Hindenburg row: Govt open to form committee to boost investor protection regulations

The court was hearing two Public Interest Litigations (PILs) filed on the Adani-Hindenburg controversy.

The Union government on February 13 informed the Supreme Court that it has no objection to form a committee to come up with suggestions to strengthen the existing regulatory mechanism to protect investors from market volatility.

Solicitor General Tushar Mehta, appearing for the government, however said that the remit (area of authority or responsibility) of the committee is important since, it is bound to have larger ramifications. The SG requested the bench to permit him to submit the remit of the committee along with a suggestion on the members of the committee in a sealed cover. The SG also said that Securities Exchange Board of India (SEBI) is competent enough to handle situations such as the market volatility post the Hindenburg report.

The court adjourned the case to February 17 to examine the remit and other details.

The court was hearing two Public Interest Litigations (PILs) filed on the Adani-Hindenburg controversy.

On February 10, the Supreme Court bench asked SEBI to suggest measures that could be taken to protect Indian investors from market volatility similar to what transpired following the release of the Hindenburg report.

The Bench had asked SEBI to apprise it of the existing regulatory framework for protecting investors, and whether it is necessary to put in place more measures to strengthen the mechanism. It asked whether the government would agree to form a committee to come up with suggestions on the mechanism, as well as who could be the members of the committee.

Filed by lawyer Vishal Tiwari, the PIL states that the government has not taken any concrete action so far, despite the Hindenburg report perpetrating a massive attack on the economy of the country.

Tiwari’s PIL seeks setting up a committee under a retired Supreme Court judge to look into the Hindenburg report that has accused the conglomerate of unfair practices.

Another PIL filed by ML Sharma demands that 'short-selling' be made an offence and US short-selling firm Hindenburg Research founder Nathan Anderson and his associates be prosecuted.

It also sought an investigation against Anderson and his associates in the US and in India for allegedly exploiting innocent investors and the "artificial crashing" of the Adani Group's stock value in the market.