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The Supreme Court is due to issue its order on a batch of PIL on Thursday regarding the recent drop in Adani Group shares sparked by fraud allegations by Hindenburg Research. A bench made up of Chief Justice DY Chandrachud and Justices PS Narasimha and JB Pardiwala is expected to deliver its verdict on establishing a panel of experts in the field to strengthen existing regulatory measures for stock markets. Although its order was reserved, the high court on February 17 refused to accept under seal the Center's suggestion about a proposed panel of experts.
Noting that it wanted full transparency for investor protection, the High Court also ruled out the possibility of a sitting judge overseeing the operation of the proposed panel.
Emphasizing that statutory bodies like the market regulator Securities and Exchange Board of India (SEBI) are fully equipped and on the job, the central government expressed concern that any unintended messages to investors that regulators in India had that being monitored by a special group could have a negative impact on the flow of money into the country.
The Center had told the bank that it wanted to provide details such as the names and scope of the panel's terms of reference in a sealed letter.
Securities market regulator SEBI, in its memo filed with the High Court, had indicated it was not in favor of a ban on short selling or selling borrowed shares, and said it was investigating allegations made by a small short seller against the Adani Group, as well as its share price movements.
So far, lawyers ML Sharma, Vishal Tiwari, Congress leader Jaya Thakur and Mukesh Kumar, who claims to be a social activist, have filed four PILs in the high court on the matter.
Tiwari, in his PIL, called on the Center to form a committee overseen by a retired Supreme Court justice to investigate the Hindenburg Research report that made a series of accusations against the Gautam Adani industrialist-led business conglomerate.
Another PIL filed by lawyer ML Sharma sought action against short seller Nathan Anderson of the US firm Hindenburg Research and his associates in India and the US for allegedly exploiting innocent investors and "artificial collapse of the market value of the shares of the Adani Group. .
Congress leader Thakur, in his statement, called for an investigation under the supervision of a sitting high court judge against the Adani group of companies in light of the allegations.
The fourth PIL calls for an investigation by multiple central government agencies under the supervision of a panel or a former high court judge against the Adani Group following allegations of fraud and stock price manipulation.
"Appropriate direct audit (transactional and forensic audits), investigation and investigation by appropriate agencies such as Serious Fraud Investigation Office (SFIO); Registrar of Companies (RoC); Securities and Exchange Board of India (SEBI); ED ( Directorate of Compliance) on the aspect of money laundering; IT (Income Tax Department on the aspects of offshore transactions and tax havens involved and DRI (Department of Revenue Intelligence)", said the fourth foundation.
In addition to asking the Center and its agencies to cooperate with the investigation, the PIL requested an instruction to appoint a retired supreme court judge or committee to oversee and monitor the investigation and investigation.
Adani Group shares have taken a hit on stock exchanges after Hindenburg Research made a litany of allegations, including fraudulent trading and share price manipulation, against the trading conglomerate. The Adani Group dismissed the allegations as lies and said it was complying with all laws and disclosure requirements.
