Adani Row: Govt Agrees To Panel To Strengthen Regulatory Regime To Protect Investors

Adani Row: Solicitor General Tushar Mehta said the remit of the panel has to be very specific so that it doesn't affect the flow of money and investments.

The Supreme Court was hearing two public interest litigation (PIL) petitions on the Adani issue ( Image Source :Getty Images )

The Centre on Monday agreed to form a committee to determine whether modifications were required in the regulatory regime to protect Indian investors following the Adani-Hindenburg issue, Live Law reported. Solicitor General Tushar Mehta, however, told the Supreme Court that the remit of the panel has to be very specific so that it doesn't affect the flow of money and investments.

The Centre also said that SEBI and other bodies were equipped to deal with the situation.

"The government has no objection for forming a committee. But the remit of the committee would be very relevant because any unintentional message to international investors or domestic investors that the regulatory authorities need a monitoring by the committee may have some adverse impact on the flow of money. So, permit us to suggest the remit of the committee, with possible suggestion of the names of the committee members. We can provide names in a sealed cover," SG Mehta told a bench of Chief Justice of India DY Chandrachud and Justices PS Narasimha and JB Pardiwala.

CJI DY Chandrachud asked SG Mehta to give a note on the proposed remit of the committee by Wednesday and agreed to hear the matter on Friday.

The stocks of Adani Group have taken a beating since US short-seller Hindenburg Research accused it of stock manipulation and accounting fraud. The Adani Group has denied any wrongdoing and has threatened to sue Hindenburg.

READ | Adani Row: SC Suggests Formation Of Panel, Seeks SEBI Response On Ways To Protect Investors

The top court was hearing two public interest litigation (PIL) petitions on the Adani issue. One was filed by Advocate Manohar Lal Sharma seeking directions to conduct an inquiry and register a First Information Report (FIR) against founder of Hindenburg Research for its recent report on Adani Group. 

The second was filed by Advocate Vishal Tiwari, who sought an inquiry into the Hindenburg report by a committee headed by a retired judge of the top court.

On February 10, the top court had expressed concerns about protecting Indian investors against market volatility in the wake of the Adani stocks rout after the publication of the Hindenburg report and sought the views of the Centre and the SEBI on the measures to strengthen the regulatory framework.

The Supreme Court said Indian investors had suffered losses running into several lakh crores and suggested formation of a committee of domain experts to put in place robust practices to protect investors.