Give names of experts on next hearing, says top court
- He said the existing statutory regime and regulatory mechanism should not be undermined at any cost. "In respect of volatility of share prices of specific companies, there are robust frameworks in place, which get automatically triggered and when triggered, are transparently disclosed in public domain and serve as a signal to investors in respect of risks related to high volatility of those shares," the Sebi said.
- The bench posted the matter for hearing on Friday and asked SG to give the names of experts on that day. Without naming the Adani group, the market regulator informed the SC in its written submissions that the sharp drop in the market value of shares of the group companies have negligible impact on Sensex.
- "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%," it said. Although the SC had on Fri- day entertained the two PILS by advocates Vishal Tiwary and ML Sharma, it had commented on their understanding they are appearing by saying they appear "not-so-well informed".
- The CJI-led bench had sought to know the consequences of the operations of short sellers like Hindenburg Research, who make money by pulling down shares of companies, for Indian investors in a world where capital moves seamlessly across national jurisdictions. "The point of concern of the court is this-How do we ensure protection of Indian investors? Suppose it is because of short selling... literally in the course of three four minutes trades are done. As a result of short selling, the value of products gets depressed depending on the number of shares offered in the market. Then the seller steps into the market to buy these shares and gets the benefits of the depressed price and makes profit", the SC had said.
- "Today capital is moving seamlessly in and out of India. How do we ensure that Indian investors are ring- fenced? The small investors, a large chunk of which is from the middle-class, who throng the stock market, have no control over it. How do you ensure that they are protect- ed? What role should be envisaged for SEBI in future," it had said.