Supreme Court Calls for Safeguards to Strengthen Regulatory Mechanism for Indian Investors

The Supreme Court on Friday called for safeguards to strengthen the regulatory mechanism to protect Indian investors from market volatility like the one witnessed in the wake of the Hindenburg report on the Adani Group. A three-judge bench, headed by Chief Justice of India D Y Chandrachud, noted that the stock market has seen the rising presence of the middle-class and there was a need, therefore, to scale up security measures in tune with India’s changing status on the world stage. The court suggested the formation of an expert committee to be drawn from experts from the securities market, the international banking sector, and a former judge to guide and strengthen the regulatory framework to ensure Indian investors are protected against any future volatility. The court asked the Solicitor General to let it know if the government would be willing to accede to the suggestion for a committee and went on to clarify that whatever it said was “not intended to be any reflection on the discharge of its statutory functions by the SEBI or any statutory authority”.