New Delhi: The Supreme Court on Friday said it would pass orders to constitute an expert committee to review the regulator mechanism in light of the Hindenburg-Adani Group row, but turned down the Centre’s suggestion that it would propose names to this panel in a sealed cover.
The bench headed by Chief Justice of India, Justice Chandrachud, observed: “We will select the experts and maintain full transparency. If we take names from the government, it would amount to a government constituted committee. There has to be full (public) confidence in the committee.”
The CJI also said that during the hearing they could not start with a “presumption of regulatory failure”.
Last Friday, the top court sought a response from the Ministry of Finance and the statutory market regulator SEBI on how to ensure that Indian investors were protected in future against sudden volatility, after taking note of a recent market crash in the wake of a report by US short-seller firm Hindenburg Research on the Adani Group.
The bench headed by Justice Chandrachud sought a response from the Centre and the Securities and Exchange Board of India (SEBI) on the existing regulatory framework and the need for putting into place a robust mechanism to protect investors.
The bench then suggested the need to form a committee of experts from various areas such as securities, international financial law experts, and someone from the regulatory body, led by a former judge.
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