Securities Market
Protection of investors—Petitions concerns the loss of investor wealth in securities market over the last few weeks because of a steep decline in the share price of the Adani Group of Companies—Decline in the share price was precipitated by a report published by Hindenburg Research—Report alleges that the Adani Group of Companies has manipulated its share prices; failed to disclose transactions with related parties and other relevant information concerning related parties in contravention of the regulations framed by SEBI; and violated other provisions of securities laws—Supreme Court noted that there is a need to review existing regulatory mechanisms in the financial sector to ensure that they are strengthened with a view to protect Indian investors from volatility in the market—SEBI is seized of the investigation into the allegations made against the Adani Group Companies—SEBI directed to include in its ongoing investigation the following issues as to whether there has been a violation of Rule 19A of the Securities Contracts (Regulation) Rules, 1957; whether there has been a failure to disclose transactions with related parties and other relevant information which concerns related parties to SEBI, in accordance with law; and whether there was any manipulation of stock prices in contravention of existing laws—Expert Committee constituted for the assessment of the extant regulatory framework and for making recommendations to strengthen it—All agencies of the Union Government including agencies connected with financial regulation, fiscal agencies and law enforcement agencies shall co-operate with the Committee. [Securities Contracts (Regulation) Act, 1956, Section 30; Securities Contracts (Regulation) Rules, 1957, Rule 19A]
[Para 9 to 18]