3. ‘Can’t ask SEBI to take media reports as gospel truth’

| Nov 24, 2023, 23:58 IST

What

The Supreme Court on Friday expressed its disinclination to doubt the investigations carried out by the Securities and Exchange Board of India (SEBI) into allegations levelled by the global short-seller Hindenburg against the Adani Group, while emphasising the need to insulate investors from the volatility triggered by those who "short" stocks for gains.
The top court said it has no reason to "discredit" SEBI, as there was no material before it to doubt what the market regulator has done, and the court does not have to treat what was set out in the Hindenburg report as a "true state of affairs".

Order reserved

A bench headed by Chief Justice D Y Chandrachud, which reserved its order on a batch of pleas concerning the Adani-Hindenburg row on allegations of stock price manipulation, said it cannot ask a statutory regulator to take as a "gospel truth" something which was published in the media.

Why Congress leader was rebuked

The Supreme Court on Friday rebuked a Congress leader for demanding "without a shred of evidence" an independent probe against State Bank of India and Life Insurance Corporation for investing huge amounts in Adani group stocks and suffering substantial losses in the meltdown of group shares following the Hindenburg report.
In a spontaneous response to advocate Varun Thakur’s plea on behalf of petitioner Jaya Thakur, the court said irresponsible demands were being made without evidence and without realising its impact on the country’s economy.

Prashant Bhushan in a tight spot

Advocate Prashant Bhushan, the vanguard of PILs demanding an independent probe into short seller Hindenburg’s report, found himself in a tight spot on Friday as the Supreme Court caught him citing old reports of inquiries initiated by the Directorate of Revenue Intelligence against the conglomerate while suppressing the outcome.

Popular from Business

end of article