Securities Contracts (Regulation) Rules, 1957 – r. 19A – Loss of the investor wealth in securities market – The Hidenburg Report – Investigation – The batch of petition in the instant case are regarding the loss of investor wealth in the securities market because of the steep decline in the share of the Adani Group of Companies because of the report published by one Hidenburg Reasearch in which it was alleged that the Adani Group of Companies has manipulated its share prices and also has failed to disclose the transaction with related parties in contravention of the regulations framed by SEBI – The report alleges that company has violated other provision of securities laws – Hindenburg Research has taken a short position in the Adani Group companies through US traded bonds and non-Indian traded derivative instruments – SEBI had started the investigation, the Court directed it to extend the scope of its investigation which should include investigation as to any violation of r. 19A, and also that whether there has been any failure to disclose transaction with related parties along with other relevant information and also that whether there was any manipulation of stock prices in contravention of existing laws – Further, the Court ordered the appointment of an Expert Committee for the assessment of the extant of regulatory framework and for the recommendation to strengthen and also to suggest the measures to strengthen investor awareness – Also, for effective working of Expert Committee, the Court directed SEBI to provide requisite information relevant for the purpose and also directed other agencies of the Union Government to cooperate with the committee.
As published in the Supreme Court Reports, Supreme Court of India. Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.
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