Supreme Court in its ruling has stated that it reserves the right to appointing the expert panel committee to strengthen regulatory measures from stock market and has refused to accept the names suggested by the Centre in a sealed cover.
Supreme Court refuses to accept Centre’s suggestion on panel experts
Chief Justice of India DY Chandrachud stated that Supreme Court would pass orders to constitute an expert committee and remarked that if names suggested by the Centre were not given to the third party, then it would be a lack of transparency.
“We will select the experts and maintain full transparency. If we take names from the government, it would amount to a government constituted committee. There has to be full (public) confidence in the committee,”
CJI also observed,
“We can’t start with a presumption of regulatory failure”.
Solicitor General Tushar Mehta who represented SEBI, shared the recommendations on the names of committee members and their powers ina sealed envelope
“We want the truth to come out, but it should not affect the market. The court can take a decision on assigning supervision to a former judge,” SG Mehta said.
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Impact of Hindenburg Research on Adani Group
Since US short seller Hindenburg Research has accused Adani Group of Stock manipulation and accounting fraud its stocks have taken a massive beating. In the meantime Adani Group has denied any wrong doing and has threatened to sue Hindenburg.
Need for Expert Committee on Domain Experts
In the earlier hearing, the Supreme Court had said that Indian investors had suffered losses running into several lakh crores and had recommended formation of an expert committee of domain experts to put in a place robust practices to protect investors.
In the subsequent hearing , the Centre informed the Supreme Court that it agreed and concurred the views of Supreme Court that it was agreeable to form an expert committee to review the regulatory framework.
To this Solicitor General Mehta requested that the remit of the committee should be defined in such a manner that it should give an impression to foreign and domestic investors that there are inadequacies in the regulatory framework.
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