The Commission Formed by Apex court has stated that during ongoing investigation it hasn’t found any evidence till now which suggests the failure of functioning of concerned authorities and sebi in taking action by S.E.B.I a very popular issue of securities regulations by the Adani group or any other organizations. The Commission was formed to give the whole description of condition and to provide suggestion so that the investors fund can be secured ,be made sure that profit- oriented organizations do follows rules and regulations and further issues like this doesn’t arise.
The domains of probe which were taken up Commission are :-
- The violation of Regulation 19A of securities contracts rules. 1957( of public shareholding must be 25%or more.)
- As per the law there was any violation of rules in disclosure of financial information of the participants and other organizations in respect to S.E.B.I.
- The changes in the price of securities was made or not while not following the present rules.
The Scholars Answers on these domains were:-
(1) The public offerings is focused on thirteen organizations which is twelve non Indian organizations funders are in compliance in the laws and disclosed their monetary and non monetary information as per rules and regulations.
The S.E.B.I is trying to make a issue . Till that issue is registered this official stand cannot be made. With the coming out of Hindenburg report it has cleared that there is anything which is off and should be addressed and it will only come out when further investigation are done.
(2) The Commission considered that S.E.B.I has modified the terminologies like “ Related Party” and “ Related Party transactions “ having provided sufficient time to organizations to modify their operations as per the new definitions and it was a good functioning examples therefore it suggests that there nothing “Operational Failure”.
3) The Commission considered that S.E.B.I has an alert and operational functioning observation structure to consider and notify of large price and mass exchanges and taken actions as per the alerts given by system.
Taken action on the independent verification to focus on the honest changes in the original price finding out had been changed in a illegitimate way. In this there were 849 alerts were given for suspicious changes in price or Mass objects changes were made.
Considering this alerts the S.E.B.I took actions and resulted that there was no suspicious movements which were being done SEBI also found that some entities have taken short positions prior to the publication of the Hindenburg Report and have profited from squaring off their positions after the price crashed upon publication of the
Case Title Vishal Tiwari v. Union of India & Ors. | Writ Petition (Civil) No. 162 of 2023 and ors.
Name :- Shivraj Kadlimatti , Class :- 2nd year B.B.A.L.L.B , College:- Army Law college pune intern under legal vidhiya
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