SC sets aside the 2008 NCDRC judgment capping interest on credit card dues at 30 pc
The 2008 NCDRC judgment was set aside by a bench of Justice Belas M Trivedi and Justice Satish Chandra Sharma. The copy of the judgment is awaited.
The apex court allows SEBI to continue with its ongoing probe into Adani crash
The Supreme Court on Thursday set-up an expert committee headed by its former judge, Justice Abhay Manohar Sapre, to investigate whether there was a regulatory failure in dealing with the alleged contravention of laws pertaining to the securities market in meltdown of the shares of the Adani Group companies in the wake of Hindenburg Research Report on January 24, this year.
Allowing the Securities and Exchange Board of India (SEBI) to continue with its ongoing probe into the Adani fiasco at the stock market, Chief Justice DY Chandrachud headed a bench also comprising Justice PS Narasimha and Justice JB Pardiwala asked the expert committee to provide an “overall assessment of the situation including the relevant causal factors which have led to the volatility in the securities market in the recent past” causing a huge loss to investors.
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The expert committee has also been asked to suggest measures to strengthen investor awareness.
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Headed by Justice Sapre, the committee has OP Bhatt, Justice JP Devadhar (retired), KV Kamath, Nandan Nilekani and Somashekhar Sundaresan as its members.
Asking the committee to submit its report in a sealed cover within two months, the top court in its order has tasked the committee to suggest measures to strengthen the statutory and/or regulatory framework and to secure compliance with the existing framework for the protection of investors.
Allowing the expert committee the liberty to take recourse to external experts in its work, the court asked the chairperson of the SEBI to ensure that all requisite information is provided to the Committee.
“All agencies of the Union Government including agencies connected with financial regulation, fiscal agencies and law enforcement agencies shall cooperate with the Committee,” the top court ordered.
Observing that it “appears” that SEBI is seized of the investigation into the allegations made against the Adani Group companies, the court noted that the market regulator has not expressly referred to an investigation into the alleged violation of the Securities Contracts (Regulation) Rules 1957 which provide for the maintenance of minimum public shareholding in a public limited company.
Stating that there may be various other allegations that SEBI must include in its investigation, the court directed the SEBI to also probe whether there has been a violation of Rule 19A of the Securities Contracts (Regulation) Rules 1957.
It further asked the market regulator to inquire whether there has been a failure on the part of Adani Group to disclose transactions with related parties and other relevant information which concerns related parties to SEBI, in accordance with law. And whether there was any manipulation of stock prices in contravention of existing laws.
The top court told the market regulator that its directions to hold investigations on three aspects of Adani related stock market crash “shall not be construed to limit the contours of the ongoing investigation.”
The court ordered the SEBI to expeditiously conclude the investigation within two months and file a status report.
Hindenburg Research has in its January 24, 2023, report alleged that the Adani Group of companies has manipulated its share prices; failed to disclose transactions with related parties and other relevant information concerning related parties in contravention of the regulations framed by SEBI; and violated other provisions of securities laws.
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