The Supreme Court of India has taken a significant step towards addressing the issues arising from the Adani Group's stock crash that was triggered by allegations made by US short-seller Hindenburg. In a recent development, the Supreme Court has formed a six-member expert committee to examine the situation and suggest measures to strengthen the regulatory mechanisms for the stock market.
The committee will be headed by retired judge Abhay Manohar Sapre and will include renowned personalities such as veteran banker KV Kamath, former SEBI chief OP Bhat, Infosys co-founder Nandan Nilekani, lawyer Somasekhar Sunderesan, and retired Justice JP Devdhar. The committee will make an overall assessment of the situation and suggest measures to make investors more aware, and strengthen existing regulatory measures for stock markets.
The Supreme Court bench led by Chief Justice of India DY Chandrachud has emphasized the importance of addressing the concerns raised by the Adani Group stock crash and has directed the market regulator, Securities and Exchange Board of India (SEBI), to complete its ongoing investigation within two months and file a status report.
The Adani Group stock crash has raised concerns among investors and market participants, and the Supreme Court's intervention is expected to provide a much-needed boost to investor confidence. At a time when the Modi government has been on the defensive, the announcement of such a committee is seen as a setback for the BJP government.
