Plea in SC seeks report from Centre, SEBI on market crash after LS results
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New Delhi: A plea in Supreme Court sought directions to the Centre and the Securities and Exchange Board of India for submitting a report on the stock market crash as the poll results came out on June 4, Scroll reported citing LiveLaw.
As the counting of the votes was underway on June 4, the markets began plunging when it emerged that the BJP would not gain majority on its own.
The Sensex plummeted 4,389.73 points or 5.74% at 72,079.05, and the Nifty 50 fell 1,379.40 points or 5.93% at 21,884.50 at closing, the report said.
More important, the stocks of Adani Group companies were particularly affected by the plunge.
Advocate Vishal Tiwari submitted the plea in the apex court as an interlocutory application in the writ petition regarding the allegations raised by Hindenburg Research against Adani Group.
Tiwari said in the petition that ordinary citizen has the right to know if the market regulator completed the pending investigations into the Adani-Hindenburg case.
The Supreme Court in March last year formed a six-member committee to review regulatory mechanisms and in January it asked Centre and the Securities and Exchange Board of India to ‘consider the recommendations of the expert committee to strengthen the regulatory framework in order to protect the interests of investors.’
The plea submitted to the court said: “The result of the investigations made by SEBI [market regulator] in this respect shall be placed on record so that the things may not remain hidden and buried,”.
Tiwari mentioned in the plea that the court had highlighted in Adani-Hindenburg case the need for a regulatory framework to protect investors.
The plea further pointed out that the stock market crash after poll outcome suggested nothing had changed.
“It is said that after announcements of exit polls in respect to the Lok Sabha 2024 results the share market went high, but when the actual results were announced the market crashed,” the application reportedly read.