Plea in Supreme Court seeks SEBI, Union Government report on Share Market crash after 2024 Lok Sabha Polls results

An application has been filed before the Supreme Court seeking directions to 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 [Vishal Tiwari v. Union of India and Others]..The application has been moved in the Adani-Hindenburg case which is already pending before the apex court. On January 3, this year, the Supreme Court had asked SEBI and the investigating agencies of the Central government to probe whether there was any violation of law in the conduct of US-based shortseller Hindenburg Research, which had led to volatility in the Indian securities market and losses to Indian investors.This was after the Court concluded that there was no need for it to take any action on the allegations of stock manipulation levelled by Hindenburg research against the Adani group of companies.The Court had also directed SEBI and the government to consider the recommendations of an expert committee earlier appointed by it which had suggested measures to strengthen the regulatory framework to protect the interests of the investors."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,” the judgment said..The latest plea moved by advocate Vishal Tiwari has argued that it is unclear whether SEBI has completed the pending investigation in compliance with the Court's order and has submitted any record to the court."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 said.It also pointed out that it is unclear whether the government has considered the recommendations made by the expert committee..In the application, Tiwari has also highlighted the recent crash in the share market that occurred after the conclusion of the 2024 Lok Sabha elections."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," the plea argued..The plea has, therefore sought directions to SEBI to submit the investigation report in the Adani-Hindenburg issue pursuant to directions of the top court on January 3.It has also sought directions to both the Union Government and SEBI to submit a detailed report on the share market crash and loss of investors after the 2024 Lok Sabha election results..Adani vs. Hindenburg Research: Key takeaways from Supreme Court judgment