Adani Hindenburg Case | Government will not weaken SEBI’s capacity, will submit suggestions for expert panel; Center replied in SC

New Delhi: A hearing was held in the Supreme Court on Monday regarding the Adani vs Hindenburg dispute. Meanwhile, the Center told the Supreme Court that it had no objection to forming a committee to improve the working of the stock market. But it has to be kept in mind that foreign investment should not be affected. At the same time, the Supreme Court allowed the Center to submit its suggestions in a sealed cover to the members of the committee.

SEBI competent to deal with the situation

Solicitor General Tushar Mehta, appearing for the Centre, said the government has no objection to appoint a committee to suggest how to ensure protection of investors in future and SEBI is competent to deal with the situation. At the same time, the Supreme Court has asked the Central Government to come on Friday and inform about the functioning of the committee.

During a hearing on the Adani-Hindenburg row in SC, Solicitor General Tushar Mehta says the government has no objection to appointing a committee to suggest how to ensure investors are protected in future & that SEBI is competent to deal with the situation.

— ANI (@ANI) February 13, 2023

The central government has told the court that it will not curtail the ability of the Securities and Exchange Board of India to regulate the Indian markets. It will also submit suggestions to the panel, recommended by the Supreme Court, which will have a former judge as its head.

The Center also said that SEBI is already monitoring the markets, and is reportedly taking follow-up action on the share sale, which was canceled by Adani despite being oversubscribed. The government told the court that though it would not reduce the capacity of the agencies, it was ready to recommend names for an expert committee.

It is worth mentioning that earlier the hearing of the Adani-Hindenburg case was held on February 10 in the Supreme Court bench of Chief Justice DY Chandrachud, Justice PS Narasimha and JB Pardiwala. During this, the court has indicated that it may constitute an expert committee to give suggestions.