Earlier, the Court had raised concern that Indian investors have suffered losses running into several lakh crores due to the fall in share prices of the Adani Group companies after the publication of Hindenburg report. As such, the Court had asked SEBI to suggest measures that can be taken to protect Indian investors in the future.
In response, the SEBI has now asserted that it is strongly and adequately empowered to ensure stable operations and development of the securities markets and the protection of investors. Notably, SEBI has also submitted that the events in focus “have not had any significant impact at the systemic level.“
“While the shares of the Group have seen significant decline in prices on account of selling pressure, the wider Indian market has shown full resilience. The combined weight of the Group companies in Sensex is zero and in Nifty is below 1%…
…Indian markets have seen far higher turbulent times in the past, especially during the Covid pandemic period…
…the subject of the PIL relates to events that are localized to a single Group of companies and that there is no significant impact at a market wide level or at a system wide level, that might warrant a system level review of the regulatory frameworks in operation,” the affidavit stated.
Source: Barandbench
