Following the Hindelburg report on Adani Group, the Supreme Court on Thursday said that a six-member committee headed by former Justice Abhay Manohar Sapre will assess and suggest a regulatory framework to protect investors against market volatility and for making recommendations to strengthen it. The apex court seeks report to be submitted in two months.
“In order to protect Indian investors against the volatility of the kind which has been witnessed in the recent past, we are of the view that it is appropriate to constitute an Expert Committee for the assessment of the extant regulatory framework and for making recommendations to strengthen it,” said a bench headed by ChiJustice of India D.Y. Chandrachud and also comprising Justices P.S. Narasimha and JB Pardiwala.
The Expert Committee shall be headed by Justice Abhay Manohar Sapre, a former judge of the Supreme Court of India along with other five members which include — retired judge Justice J.P. Devadhar, O.P. Bhatt, K.V. Kamath, Nandan Nilekani and Somashekhar Sundaresan.
The court said that the remit of the Committee shall be as to provide an overall assessment of the situation including the relevant causal factors which have led to the volatility in the securities market in the recent past and to suggest measures to strengthen investor awareness among others.
The Committee shall be remit on to investigate whether there has been a regulatory failure in dealing with the alleged contravention of laws pertaining to the securities market in relation to the Adani Group or other companies; and to suggest measures to strengthen the statutory and/or regulatory framework; and secure compliance with the existing framework for the protection of investors.
“The Chairperson of the Securities and Exchange Board of India is requested to ensure that all requisite information is provided to the Committee. All agencies of the Union Government including agencies connected with financial regulation, fiscal agencies and law enforcement agencies shall co-operate with the Committee. The Committee is at liberty to seek recourse to external experts in its work,” the court said. The honorarium payable to the members of the Committee shall be fixed by the Chairperson and shall be borne by the Union Government, the court said.
The court requested the Committee to furnish its report in sealed cover within two months. The court also noted that SEBI is seized of the investigation into the allegations