Plea before SC seeks a detailed report from SEBI on share market crash post Lok Sabha 2024 results

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Recently after the Lok Sabha polls 2024 Results another big crash in Share Market has been seen and stock market volatility has again emerged, the application states

An application has been filed before Supreme Court of India seeking a direction to the Union Government and SEBI to submit a detailed report on the Share Market crash and loss of Investors following the Lok Sabha 2024 Polls Results.

Filed through Advocate Vishal Tiwari, the instant application also seeks compliance with the court's earlier order to SEBI on submitting a Status Report on the directions given in January 3, 2024 order for investigating if any loss has been suffered by Indian investors due to the conduct of Hindenburg Research.

Citing the Hindenburg incident court has been told that, "the primary focus was that in future what steps shall be taken to strengthen the Regulatory system so that the investors could be protected and their investment in the share market may remain safe".

"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....", the application states.

In the main petition, in which this application has been filed, the Supreme Court has already refused to transfer the probe against Adani Group over allegations made by Hindenburg Research to an independent agency.

Top Court had observed that no willful or deliberate violations were done by SEBI and the court could not ordinarily supplant powers to investigate.

Last year, the Expert Committee appointed by the Supreme Court to review the regulatory mechanism in the light of Adani-Hindenburg issue had said that prima facie, it is not possible to conclude that there has been a regulatory failure around the allegation of price manipulation.

Case Title: Vishal Tiwari vs. Union of India & Ors.