New Delhi, March,2: The Supreme Court on Thursday directed market regulator SEBI to investigate if there was any violation of Section 19 of SEBI Rules and if there was any manipulation of stock prices in contravention of existing laws.
A three-judge Bench led by Chief Justice of India DY Chandrachud asked the SEBI to investigate if there was any failure to disclose transactions with related parties and other relevant information concerning related parties to the market regulator.
It took note of the fact that the SEBI was already investigating the allegations made in the January 24 Hindenburg Research report.
Clarifying that its directions will not limit the contours of the ongoing probe, it asked the SEBI to submit a report to it in two months.
The Bench which included Justice PS Narasimha and Justice JB Pardiwala also set up an expert committee headed by former SC Judge AM Sapre to suggest measures to safeguard investors’ interests in the wake of Hindenburg Research report leading to sudden crash in Adani Group shares.
Other members of the expert committee are OP Bhat, Justice (Retd) JP Devdutt, Nandan Nilakeni, KV Kamath and Somasekharan Senderasan
The top court asked the expert committee to submit its report in a sealed cover to it in two months.
