Adani-Hindenburg case: Supreme Court sets up expert committee for probe

The committee consists of OP Bhat, JP Devdatt, Nandan Nilakeni, KV Kamath, and Somasekharan Sundaresan as the members. Former SC judge AM Sapre will lead the panel

The Supreme Court (SC) on Thursday ordered the setting up of a committee to investigate Adani Group and suggest measures to strengthen the framework to protect Indian investors. Former SC judge AM Sapre will head the committee.

"This court noted that there was a need for the committee for regulatory mechanisms to ensure the safety of investors," Chief Justice of India (CJI) DY Chandrachud said while delivering the order.

"In order to protect Indian investors, we are of the view that there shall be a committee. The committee consists of Mr OP Bhat, Justice JP Devdatt, Mr Nandan Nilakeni, KV Kamath, and Somasekharan Sundaresan as the members," he said, as reported by LiveLaw.

The committee's primary purpose will be to suggest measures to strengthen frameworks, investigate Adani, and suggest measures to strengthen the statutory framework. The chairperson of Sebi will provide the required information to the committee.

The committee has been asked to submit its report in a sealed cover before the apex court within two months.

In addition, Sebi has also asked to conduct an investigation.

"SEBI shall also investigate whether there has been a violation of S19 of SEBI rules, whether there was any manipulation of stock prices," Chandrachud said. The status report will be filed within two months.

A bench comprising Chief Justice DY Chandrachud, Justice PS Narasimha and Justice JB Pardiwala was to pass the order on constituting an expert committee to analyse if the regulatory mechanism needs to be strengthened to protect Indian investors. This came after a report by US-based short-seller Hindenburg Research released a report on Adani Group, leading to a major sell-off. Over $100 billion have been wiped off from the Group's valuation since the report's release just over a month ago.