Adani case: SEBI told the court – it has a strong framework to deal with market volatility
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The Securities and Exchange Board of India (SEBI) also told the court that it has a robust framework in place to ensure business continuity and deal with volatility in the stock market. SEBI claimed that developed securities markets across the world consider short selling as a ‘legitimate investment activity’.
New Delhi. Stock market regulator SEBI told the Supreme Court that it is probing the market movements immediately before and after the release of the report as well as allegations by US short seller Hindenburg Research against the Adani Group to identify any violations of regulations. . The Securities and Exchange Board of India (SEBI) also told the court that it has a robust framework in place to ensure business continuity and deal with volatility in the stock market. SEBI claimed that developed securities markets across the world consider short selling as a ‘legitimate investment activity’.
SEBI told a bench headed by Chief Justice (CJI) DY Chandrachud on Monday hearing two public interest litigations (PILs) filed after a sharp fall in Adani Group’s shares, that it has found violations of Sebi regulations, short selling norms. The investigation is “examining both Hindenburg’s allegations and market activity immediately before and immediately after the release of the report.” SEBI said that the recent sharp fall in the shares of Adani Group did not have much effect on the stock market.
SEBI said, “The Indian market has seen worse volatility before, especially during the time of Corona pandemic, when Nifty fell by about 26 per cent between March 2, 2020 and March 19, 2020 (13 trading days). In view of market volatility, SEBI had reviewed its existing market mechanism on March 20, 2020 and made some changes.
Disclaimer:IndiaTheNews has not edited this news. This news has been published from PTI-language feed.
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