New Delhi, Feb 13 : The Central government on Monday informed the Supreme Court that the existing structure, which includes the Securities and Exchange Board of India (Sebi) and others agencies, are fully equipped to handle the situation which occurred after Hindenburg report on Adani group, and it would not oppose the court’s suggestion to constitute a committee to strengthen the existing regime.
It stressed that the court could permit it to suggest the remit of that committee with possible suggestions of names of the committee.
Solicitor General Tushar Mehta, representing the Centre, submitted before a bench headed by Chief Justice of India D.Y. Chandrachud that: “Our instructions are that existing structure – Sebi and other agencies – are fully equipped not only regime wise but otherwise also, in taking care of the situation.
“However, responding to suggestion which fell from your lordshipsathe government has no objection in constituting a committee.”
Mehta stressed that the remit of the committee should be very relevant because any unintentional message to the international investors and domestic investors that even a regulator or statutory monitoring authority also needs a monitoring by a committee appointed by the Supreme Court may have some adverse impact on the flow of money.
He sought that the court could permit the government to suggest the remit of that committee with possible suggestions of names of the committee in a sealed cover, as it may not be appropriate to discuss in open court hearing.
“We suggest some names, which appeal to your lordships, may not appeal… but would be the people of some calibre or some standing in their respective fields, but the remit will be very relevant,” he said.
The bench, also comprising Justices P.S. Narasimha and J.B. Pardiwala, asked the SG to come back with the proposed remit of the committee by Friday and put it down on a note for the bench to examine, so that it could either modify or reflect on it, and then it can pronounce an order.
Advocate Vishal Tiwari, one of the petitioners, argued that although organisational structure is there, yet this problem has arisen, there may be some loopholes which could be examined by the expert committee.
The bench said it will continue hearing the matter on Friday.
On February 10, the Supreme Court had observed that there is a need for a robust regulatory framework to protect the interest of the investors and if Centre agrees, a committee may be set up to suggest regulatory improvements.
The apex court was hearing a plea seeking a direction to set up a committee monitored by a retired apex court judge to investigate the Hindenburg Research report, which resulted in crashing of Adani group company share prices and caused massive loss to investors. Two separate petitions have been filed by advocates Tiwari and M.L. Sharma in connection with the Hindenburg report on Adani group.