The central government told the Supreme Court on Monday that it had no objection to the proposal to set up a committee of experts to strengthen the regulatory mechanism for the stock market. The apex court is hearing the matter of fall in shares of Adani Group after Hindenburg Research report came out. The central government had told a bench headed by Chief Justice (CJI) DY Chandrachud that in view of larger interest, it wanted to provide the names of experts and the scope of work of the committee in a sealed cover. However, the Supreme Court has refused to accept this suggestion.
In the last hearing, Solicitor General Tushar Mehta, appearing for the central government and market regulator SEBI, said that the regulator and other statutory bodies are ready to deal with the situation arising out of the Hindenburg Research report. He had said, ‘The government has no objection in forming the committee. But we can suggest names of experts. We can suggest names in a sealed cover.
Mehta had expressed apprehension that any “unintentional” message may adversely affect the money flow if the panel is formed. Following this, the top court listed two public interest litigations (PILs) for causing harm to investors and artificially falling shares of Adani Group for hearing on Friday.
The Supreme Court had said on February 10 that there was a need to protect the interests of Indian investors in the backdrop of the fall in the Adani Group’s stock markets. The court asked the central government to consider strengthening the regulatory mechanism by constituting an expert committee headed by a former judge.
During the hearing on Friday, Chief Justice DY Chandrachud told Solicitor General Tushar Mehta, ‘We do not want any sealed cover. We want complete transparency… If we accept these suggestions, it will be seen as a government appointed committee, which we do not want. Leave the decision to us.