The Adani Saga: SC rejects govt's ‘sealed cover’ suggestions on expert panel, pitches for transparency

Calling for full transparency, the Supreme Court on Friday refused to accept the Center's suggestions on a panel of experts to strengthen regulatory measures for the stock market following the share price crash in the Adani Group stocks.

Stating that the SC wants to have complete transparency, a bench comprising Chief Justice D Y Chandrachud and Justices P S Narasimha and J B Pardiwala observed, "We will not accept the sealed cover suggestion by you because we want to maintain full transparency".

The apex court stated that “true facts” should come out from the expert panel without impacting stock markets.

"If you're not intending us to disclose the names then trust us to appoint our own independent persons," said the CJI.

On Monday, the Centre had agreed to the apex court's proposal on setting up a panel of experts to look into strengthening the regulatory mechanisms for the stock market in the wake of the share price crash in the Adani Group stocks.

While refusing the 'sealed cover' suggestion, the apex court also reserved its order on the appointment of a committee to probe the issue. The bench stated they will not entertain suggestions from the government or petitioners on who should be members of the committee.

The court was hearing two PILs, one of which sought a direction to the Centre to constitute a committee monitored by a retired apex court judge to look into the Hindenburg Research report. The other one sought prosecution of Nathan Anderson, founder of the firm and his associates in India as well as the US for allegedly "exploiting innocent investors" and the "artificial crashing" of the Adani Group's stock value in the market.

Meanwhile, in a note submitted to the SC, market regulator Securities and Exchange Board of India (SEBI) said that it is "already enquiring into both, the allegations made in the Hindenburg report as well as the market activity immediately preceding and post the publication of the report, to identify violations of SEBI Regulation."