NEW DELHI: SEBI on Monday told the Supreme Court that although it did not have any objections to accede to its suggestions for constitution of an expert committee to examine the changes required in the regulatory framework but urged court to give it the liberty for suggesting its remit.
Contending that the remit could have “some adverse impact on the flow of money” and also affect internationally, the the market regulator said, “Existing structure are fully equipped not only regime wise but also otherwise to take care of the situation. We would have no objection, for constituting a committee but the only difficulty will be remit of the committee. Remit of the committee is important since it has an effect internationally and if we can suggest the remit of committee in sealed cover may have some adverse impact on the flow of money.”
“We can suggest the remit of the committee with possible suggestions on the name of the committee in sealed cover as that may not be favourable in open court. In all propriety point of view, we will file but the remit would be very very relevant. We would not like to undermine the competence of the agencies.”
Acceding to SGs request, a bench of CJI DY Chandrachud, Justices PS Narasimha and JB Pardiwala posted the pleas which had sought for court monitored probe into the Adani Hindenburg issue for Friday.
Apart from agreeing for constitution of a committee, SEBI also told the court that Indian markets have seen far higher turbulent times in the past, especially during the COVID pandemic but it did not ban “short selling.”
SEBI also told court that it is enquiring into the allegations made in the Hindenburg report as well as the market activity immediately preceding & post publication of the report. “As the matter is in early stages, it may not be appropriate to list details about the ongoing proceedings,” SEBI further said.