Supreme Court ordered to SEBI to ensure investors' interests are protected
The Supreme Court today ordered the capital markets regular SEBI and the government to take action if short seller Hindenburg's action that led to massive erosion of investors' wealth had violated any law.
In a big win for the Adani Group, the Supreme Court today said the report by the OCCRP - an organisation funded by billionaire George Soros, among others - can't be the basis for doubting SEBI's investigation into the Hindenburg case.
A bench of Chief Justice of India DY Chandrachud and justices JB Pardiwala and Manoj Misra said the Securities and Exchange Board of India (SEBI) should take measures immediately to strengthen, reform and ensure the regulatory mechanisms in the financial sector protect the interests of investors.
The SEBI should ensure the financial sector is not easily destabilised by conditions such as the one seen just after Hindenburg released its report, the Supreme Court said.
To achieve this, the capital markets regulator can use the suggestions given by the Supreme Court-appointed expert committee that examined India's regulatory mechanism in the investigation linked to the Hindenburg allegations.
"The SEBI, as the investigative agency of the Union government, shall probe into whether the loss suffered by Indian investors due to the conduct of the Hindenburg research and any other entities in taking short position involved any infraction of law, and if so, suitable action shall be taken," the Supreme Court said.
Shares of Adani Group companies rose after the Supreme Court verdict on the Hindenburg case. Adani Energy Solution Ltd led gains after the stocks surged over 14 per cent, followed by Adani Total Gas Ltd, which was over 11 per cent. Adani Ports and Special Economic Zone Ltd and Ambuja Cements Ltd were at 52-week high.
Adani Group stocks added as much as Rs 1.18 lakh crore in investor wealth, taking the conglomerate's total market capitalisation to as high as Rs 15.62 lakh crore, intraday, the highest since January 27, 2023.
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