The Securities and Exchange Board of India (SEBI) told the Supreme Court on Monday that the shares of Adani Group have seen significant decline in prices on account of selling pressure, and the wider Indian market has shown full resilience and the combined weight of the group companies in Sensex is zero and in Nifty it is below 1 per cent.
In a note submitted in the apex court, Sebi said: "The events that are the subject of the PIL are related to one set of entities in the market and have not had any significant impact at the systemic level. While the shares of the Adani Group have seen significant decline in prices on account of selling pressure, the wider Indian market has shown full resilience. The combined weight of the group companies in Sensex is zero and in Nifty it is below 1 per cent."
It added that Indian markets have seen far higher turbulent times in the past, especially during the Covid pandemic, when Nifty fell by around 26 per cent during March 2, 2020 till March 19, 2020 (13 trading days).
"Even during such turbulent times, SEBI did not resort to banning short selling, even though there were demands for banning it; and the markets continued to function in a robust manner, recovering far faster than other global markets' investor wealth (market capitalisation of all listed companies) which was around Rs 145 lakh crore in February 2020 but has almost doubled to about Rs 270 lakh crore now," it said.
The note said the subject of the PIL relates to events that are localised to a single group of companies and that there is no significant impact at a market wide level or at a system wide level that might warrant a system level review of the regulatory frameworks in operation.
"The entity level issues that have arisen have had a significant impact on the entity level and warrant detailed examination by the regulator. The same has already been actioned," it said.
The note added, "In the context of the PIL, the guardrails put in place by SEBI were automatically triggered when ASM (additional surveillance measures) became repeatedly applicable to shares in the Group, both when the prices were going up and recently when prices started falling."
It added that in case there are any learnings from the case that warrant policy review, SEBI would, as a specialised regulator, undertake the same in the normal course, following its established process of expert as well as public consultation.
"SEBI remains committed to its mandate of investor protection, market development and market regulation. In an ever-evolving and dynamic market, it would continue to welcome inputs in respect of the same," it added.
The SEBI's came on a plea filed by advocate Vishal Tiwari, seeking a direction to set up a committee monitored by a retired apex court judge to investigate the Hindenburg Research report, which resulted in crashing of Adani Group company share prices and caused massive loss to investors.
A separate plea has been filed by advocate M.L. Sharma in connection with the Hindenburg controversy.
--IANS
ss/arm
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
You’ve hit your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Quarterly Starter
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Access to Exclusive Premium Stories Online
Over 30 behind the paywall stories daily, handpicked by our editors for subscribers


Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share


Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor


Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements


Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app