GG News Bureau
New Delhi, 13th Feb. The Centre has no objections to a proposal to form a panel of domain experts to look into strengthening the regulatory mechanisms for the stock market, the Supreme Court was told on Monday while hearing petitions relating to the Adani stock rout following the Hindenburg report.
The central government, on the other hand, told a bench led by Chief Justice DY Chandrachud that it wanted to give the names of the committee’s domain experts and the scope of its mandate in a sealed cover in the public interest.
Tushar Mehta, appearing for the government and SEBI, stated that the market regulator and other statutory bodies are prepared to deal with the current situation resulting from the Hindenburg report.
“The government has no objection to forming a committee. But, the remit of the committee, we can suggest. We can provide names in a sealed cover,” the law officer said.
Mehta anticipated that any “unintentional” message during the panel’s setup could have a negative impact on the inflow of money.
The Supreme Court has now scheduled a hearing on Friday for two PILs alleging exploitation of innocent investors and “artificial crashing” of the Adani Group’s stock value.
On February 10, the Supreme Court stated that the interests of Indian investors must be safeguarded against market volatility in the aftermath of the Adani Group stock rout, and asked the Centre to consider forming a panel of domain experts led by a former judge to investigate ways to strengthen regulatory mechanisms.
It had also sought the views of the Securities and Exchange Board of India (SEBI) and the Centre on how to ensure a robust mechanism is in place now that capital movement is “seamless” in the country.
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