Share market crash: Plea in Supreme Court seeks direction to Centre and SEBI to submit detailed reports
New Delhi, June 8
An advocate has moved the Supreme Court seeking directions to the Centre and the SEBI to submit detailed reports on the recent share market crash after declaration of the Lok Sabha 2024 election results on June 4, leading to investors’ loss running into thousands of crores of rupees.
Advocate Vishal Tiwari – one of the petitioners in the Adani Hindenburg case – filed an interlocutory application in the matter and urged the top court to issue necessary directions to market regulator SEBI.
Noting that a loss of nearly Rs 20 lakh crore was reported by the media, Tiwari said it put a question mark upon the regulatory mechanism of the stock market as after the loss suffered in 2023 the same has been repeated and despite this Hon’ble Court direction nothing has changed.
“It is said that after announcements of exit polls in respect to the Lok Sabha 2024 results the share market went high but when the actual results were announced that it resulted in the crash of Share market,” he pointed out.
The Supreme Court had on January 3 dismissed PILs seeking to transfer the probe into allegations of stock price manipulation levelled by Hindenburg Research Report against Adani Group from SEBI to an SIT.
A three-judge Bench led by CJI DY Chandrachud, however, had directed that “SEBI and the investigative agencies of the Union Government shall probe into whether the loss suffered by Indian investors due to the conduct of Hindenburg Research and any other entities in taking short positions involved any infraction of the law and if so, suitable action shall be taken.”
It had directed the Centre and SEBI to consider the recommendations of the Expert Committee to strengthen the regulatory framework to protect the interests of the Indian investors.
Tiwari said it was unclear if SEBI has completed the pending investigations in compliance with the court order and whether any records have been submitted to the Court.
“It is the Right to Know of the Public and investors who suffered the loss whether due to some irregularities and violations by any Corporate group the Indian Stock market crashed after the Hindenburg report which caused a big loss to the public money. The result of the investigations made by SEBI in this respect shall be placed on record so that the things may not remain Hidden and Buried,” Tiwari submitted.
He also sought a direction to the SEBI to submit this investigation report in the Adani-Hindenburg matter.
