Amid the Opposition’s demand for a joint parliamentary committee (JPC) into the Adani Group row, the Centre on Monday told Supreme Court that it has no objection to a proposal for setting up a panel of domain experts to look into strengthening the regulatory mechanisms for the stock market.
The apex court was hearing pleas relating to the Adani stocks rout after the Hindenburg report.
The central government, however, told a bench headed by Chief Justice DY Chandrachud that it wanted to give the names of the domain experts for the committee and the scope of its mandate in a sealed cover in larger interest, news agency PTI reported.
Appearing for the Centre and SEBI, Solicitor General Tushar Mehta, said that the market regulator and other statutory bodies are equipped to deal with the present situation arising out of the Hindenburg report.
“The government has no objection to forming a committee. But, the remit of the committee, we can suggest. We can provide names in a sealed cover,” SG Mehta said.
Mehta apprehended that any “unintentional” message on setting up of the panel may have some adverse impact on the inflow of money.
The top court has now listed two PILs, alleging exploitation of innocent investors and “artificial crashing” of the Adani Group’s stock value, for hearing on Friday.
On February 10, the top court said the interests of Indian investors need to be protected against market volatility in the backdrop of the Adani stocks rout and asked the Centre to consider setting up a panel of domain experts headed by a former judge to look into strengthening the regulatory mechanisms.
It had also sought the views of the Securities and Exchange Board of India (SEBI) and the Centre as to how to ensure a robust mechanism is in place since the capital movement now is “seamless” in the country.
Meanwhile, the government has now put figures on record before Parliament in an answer after Congress MP Manish Tewari asked a question on the investments in the Adani Group. “Is it a fact that lending to and investment in the Adani Group of Companies from Public Financial Institutions and Public Sector Banks has increased in the last eight years?” Tewari had asked.
Government officials have been citing the ‘low exposure within permissible limits’ of public sector companies in the Adani Group to justify that there is no need for a Joint Parliamentary Committee (JPC) as demanded by the Opposition.
The entire first half of the budget session of Parliament has been rocked by the demand for a JPC after the Hindenburg report led to crash in shares of the Adani Group companies since late last month.
(With PTI inputs)
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