The Supreme Court of India (SC) on May 12, Friday said that it may grant a three-month extension to probe into the allegations of stock price manipulation by the Adani Group and lapses in regulations. The Securities and Exchange Board of India (Sebi) had asked the court for a six-month extension.
A bench of chief justices DY Chandrachud and Justices PS Narasimha and JB Pardiwala said the court registry had received the report of the apex court-appointed AM Sapre committee on the issue and would like to hear the matter on May 15, Monday after perusing the findings of the panel. “We will go through the report in the meantime. We will take up the matter on May 15,” the bench said.
On March 2, the SC had asked Sebi to probe the crash of Adani group stocks following the Hindenburg report. It also asked the regulatory body to suggest ways to strengthen the regulatory framework to protect the interest of the investors.
The apex court also set up a six-member expert committee to determine if there was any regulatory failure to deal with the issue. The committee was asked to submit the report in a sealed cover in two months. The chairman of Sebi was also ordered to provide all the relevant information to the committee. In April, Sebi moved the SC and sought a six-month extension to complete its probe
It said that to arrive at verified findings, “it would be just, expedient and in the interest of justice” that the SC extends the time, at least by six months, to conduct and conclude a proper investigation.
During Friday’s hearing, the bench told solicitor general Tushar Mehta, appearing for Sebi, that it may grant the market regulator three months instead of the six it has sought to wrap up the probe into allegations of stock manipulation.
Cautioning a lawyer appearing for petitioner Jaya Thakur, it said this court has said nothing about any regulatory failure on the part of Sebi. “Be careful when you make allegations. This may affect the sentiments in the stock market. It’s all your allegations and the panel has been formed to look into it,” the bench said, as reported by news agencies.