An application has been filed before the Supreme Court requesting the court to direct the Central Government and the Securities and Exchange Board of India (SEBI) to submit a "detailed status report on the share market crash and loss to investors after the announcement of the 2024 Lok Sabha election results."
The application has been filed under the case Vishal Tiwari v. Union of India and Others and adds to the Adani-Hindenburg case which is currently pending before the Court. This plea questions market irregularities and the lack of transparency in stock trading and transactions.
The Supreme Court in January had asked SEBI and the government to investigate whether there were any legal violations in the conduct of US-based Hindenburgh Research based on its allegations against the Adani group of stock manipulation, which it claimed had resulted in extreme volatility in the stock markets and losses to investors. There the Court concluded that there was no need for it to take action on the allegations of such stock manipulation.
However, the Court ordered that "SEBI and the investigative agencies of the Union Government shall also enquire into whether there was any infraction of law by the entities, which engaged in short-selling on this occasion. The loss which has been sustained by Indian investors as a result of the volatility caused by the short positions taken by Hindenburg Research and any other entities acting in concert with Hindenburg Research should be probed."
Based on this, the current plea has, therefore, questioned whether SEBI has completed the pending investigation in compliance with the Court's order and has submitted any record to the court.
The main focal point has been "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 plea has also contended "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. So again it has raised question that whether again the Regulatory Authority and Mechanism has failed and still the mechanism remains unstrengthen after having an example of 2023 share market crash. Whether again some manipulations were made after the Exit polls came."
