Taking in view the crashing of Indian stock markets following a report by the US-based short selling firm Hindenburg Research affecting the share prices of Adani group, the Supreme Court on Friday directed the Union Government and the Securities and Exchange Board of India (SEBI) to suggest ways for improving the regulatory mechanism for the protection of Indian investors
The explosive crisis is a defining test for India Inc and corporate governance. The government can soften the national and international fallout only by investigating the Gautam Adani affair thoroughly and with extensive public disclosure.
The Securities Exchange Board of India has released a consultation paper to amend existing regulations on buyback of securities or shares from the open market to make such routes shareholder-friendly. The proposals send mixed signals to investors.