Adani-Hindenburg row: SC pitches for transparency, rejects Centre’s 'sealed' suggestions on panel

The Supreme Court on Friday refused to accept in sealed cover Centre's suggestion on a panel of experts to strengthen regulatory measures for the stock market. The bench said that it would rather not accept the Centre's suggestions in a sealed cover, in a bid to ensure transparency.

Observing that it wants to maintain full transparency in the interests of investors, a bench comprising Chief Justice D Y Chandrachud and Justices P S Narasimha and J B Pardiwala said it would rather not accept the Centre's suggestion in a sealed cover.

“We would rather not accept the sealed cover suggestions. We want to ensure transparency. In case we take your suggestions from sealed cover, it automatically means the other party won't know,” said the bench, which also comprised Justices P S Narasimha and J B Pardiwala .


“We want full transparency for the protection of investors. We will form a committee. There will be a sense of confidence in the court,” the bench said.

"Sitting (SC) judges can hear the matter and they cannot be the part of the committee," the CJI said, adding he has been facing difficulties in setting up benches everyday.

Centre told SC that "truthfulness" of allegations made by a U.S. short seller against the Adani Group should be looked into by a panel proposed to examine investor protection, according to a government document seen by Reuters.

The Centre on Monday had agreed to the Supreme Court's proposal to set up a panel of experts to look into strengthening the regulatory mechanisms for the stock market in the wake of the recent Adani group shares crash triggered by Hindenburg Research's fraud allegations.

Saying it has no objection to constituting the panel, the Centre, at the same time, stressed that market regulator Securities and Exchange Board of India (SEBI) and other statutory bodies are "fully equipped", not only regime wise, but otherwise also to deal with the situation. It also wanted to be allowed to provide details such as names and the scope of the panel's mandate in a “sealed cover”.

Adani Group stocks have taken a beating on the bourses after the Hindenburg Research made a litany of allegations, including fraudulent transactions and share-price manipulation, against the business conglomerate.

The Adani Group has dismissed the charges as lies, saying it complies with all laws and disclosure requirements.

Till now, four PILs have been filed in the top court on the issue by lawyers M L Sharma and Vishal Tiwari, Congress leader Jaya Thakur and activist Mukesh Kumar.