Plea In Supreme Court Seeks Govt, SEBI Reports On Stock Market Crash After Lok Sabha Election Results

The application has been moved by Advocate Vishal Tiwari as an Interlocutory Application in the writ petition filed  regarding the Adani-Hindenburg issue.  In that writ petition, the Supreme Court in January this year had directed the Govt of India and SEBI to consider the recommendations of the Expert Committee to strengthen the regulatory framework to protect the interests of the Indian investors.

"The SEBI, and the investigative agencies of the Union government, shall probe into whether the loss suffered by Indian investors due to the conduct of the Hindenburg research and any other entities in taking short position involved any infraction of law, and if so, suitable action shall be taken," the Court had further directed.

In this context, the applicant, Advocate Vishal Tiwari, has also argued that it is unclear whether SEBI has completed the pending investigations in compliance with the court order and whether any records have been submitted to the Court.

“That it is the Right to Know of Public and investors who suffered the loss that whether due to some irregularities and violations by any Corporate group the Indian Stock market crashed after Hindenburg report which caused a big loss to the public money. The result of the investigations made by SEBI in this respect shall be placed on record so that the things may not remain Hidden and Buried.,” the application reads.

Through this application, Tiwari has also prayed for compliance with this direction, i.e., to direct the SEBI to submit this investigation report in the Adani-Hindenburg matter.

Tiwari stated that a significant crash in Share Market was observed after the Lok Sabha polls 2024 Results. Taking the support of media news, he said that the loss was nearly 20 lac crores.

“This again has raised question mark upon the Regulatory mechanism off the Stock exchange and after the loss suffered in 2023 same has been repeated and despite of This Hon. Court alarming Direction Nothing has 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 than it resulted the crash of Share market.”

Case Title : Vishal Tiwari v. Union of India W.P.(C) No. 162/2023 and connected cases

Citation : 2024 LiveLaw (SC) 2