New Delhi: A plea has been moved in the Supreme Court seeking a direction to the government and the market regulator to give a report on the share market crash and loss to investors after Lok Sabha Elections result on June 4.
The plea by advocate Vishal Tiwari also sought a direction to the Union government and SEBI to submit a status report on the directions given on January 3 for considering the suggestion of the expert committee headed by Justice A M Sapre in its report in the PIL in connection with the Hindenburg report on Adani group of companies. The plea has been moved as an interlocutory application in the writ petition filed regarding the Adani-Hindenburg issue.
It highlighted that the significant recent fall in the stock market and the reported loss of crores showed ‘nothing has changed’ since the Adani-Hindenberg case.
“Recently after the Lok Sabha polls 2024 Results, another big crash has been observed in the share market. Stock market volatility emerged yet again. As per reports published in some media outlets, the loss estimated 20 lakh crores”, said the plea.
The plea contended that the share market crash has raised questions upon the regulatory mechanism of the stock exchange. A similar loss such as that incurred in 2023 was repeated again and espite the apex court’s alarming direction, nothing had 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 the market crashed,” the application said. The lawyer argued that the notable decline in the stock market and the estimated loss of crores demonstrated that "nothing has changed," highlighting the need for a fool-proof regulatory framework to protect Indian investors.
Congress leader Rahul Gandhi, in a press conference on June 6 claimed that Prime Minister Narendra Modi and Home Minister Amit Shah were “directly involved” in the country’s “biggest stock market scam” in which retail investors lost Rs 30 lakh crore. Gandhi had demanded a probe by the Joint Parliamentary Committee into what he described as a “criminal act”.
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