SC decision to set up expert committee in Adani matter casts doubt on SEBI’s investigation

Source– The post is based on the article “SC decision to set up expert committee in Adani matter casts doubt on SEBI’s investigation” published in The Indian Express on 3rd March 2023.

Syllabus: GS3- Mobilisation of resources

Relevance: Money and capital markets

News- Recently, Hindenburg Research published a report levelling several allegations against the Adani Group.

What is the mandate of the committee?

1. To assess the factors that have led to market volatility.
2. To examine if there has been regulatory failure in this case
3. To suggest measures to strengthen the regulatory apparatus and ensure compliance with the existing framework to protect investors.

The committee has been asked to furnish its report in sealed cover within two months.

What are issues related to the SC decision?

The formation of the committee casts aspersions on SEBI’s investigation and doubts its ability.

The SEBI chairman has been requested by the court to ensure all information is provided to the committee.

There is opacity in the manner in which the members of the panel have been selected, and the lack of transparency the process entails.

SEBI has stated that it will conduct a detailed examination into Adani stocks. The Court has asked SEBI to conclude its investigation into the matter within two months. It would have been more prudent to wait for its regulator’s report.