Regulators are on their toes: Sitharaman
NEW DELHI: India’s regulators are looking into the Supreme Court’s suggestion of reviewing the framework to protect stock market investors, Union finance minister Nirmala Sitharaman said on Saturday, a day after the top court’s comments that came in the context of a rout in the share prices of Adani Group companies.
The minister’s comments came as officials separately reiterated the regulatory system was robust, and that the controversy surrounding the Gautam Adani-led companies was a one-off incident with no wider implications for India’s business environment.
“India’s regulators are veryvery experienced and they are experts in their domains. So, the regulators are seized with this matter and they are on their toes, as always, not just now…,” Sitharaman told reporters after the post-budget interaction with the Reserve Bank of India’s board.
Stocks of Adani group companies plunged after a report from American activist investor group Hindenburg Research accused it of fraud and stock price manipulation — allegations that the Indian conglomerate denied.
Sitharaman declined to provide any specific details related to the Supreme Court’s directives and observations. “Obviously, [you are] not expecting me to say, to you or to this gathering of senior journalists, what I will be saying in the court,” she said.
The Supreme Court on Friday implored the Union government to put in place a “robust framework” by amending laws and strengthening supervisory control in order to protect thousands of investors who have been hit after Adani Group companies lost a record $120 billion, or nearly 50% of their value, within days.
Dealing with two public interest litigations (PIL) that highlighted the share price rout, a bench headed by Chief Justice of India (CJI) Dhananjaya Y Chandrachud proposed the constitution of an expert committee under the supervision of a retired judge to formulate the way forward. “If the Union (government) is ready to accept the suggestion, the necessary recommendation of the committee may be made,” said the court in its order.