Supreme Court Petition Seeks Probe into Stock Market Crash Amidst Election Results

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A petition was recently filed in the Supreme Court, urging the Centre and the Securities and Exchange Board of India (SEBI) to present a comprehensive report on the stock market crash that occurred on June 4, coinciding with election result announcements, resulting in considerable investor losses.

Filed by advocate Vishal Tiwari, the plea demands that the government and SEBI deliver a status report on compliance with the Supreme Court’s January 3 order. This order mandated consideration of recommendations from an expert committee led by Justice A M Sapre, concerning the PIL in the Adani-Hindenburg matter.

The apex court emphasized the need for the Centre and SEBI to examine the expert committee’s suggestions, aiming to fortify the regulatory framework, safeguard investor interests, and maintain the orderly operation of the securities market.

The plea claims that after exit polls hinted at a robust BJP victory in the Lok Sabha 2024 elections, the stock market surged, but subsequently plummeted when official results were declared. Reports estimate the loss at Rs 20 lakh crore, casting doubt on the efficacy of regulatory mechanisms despite judicial instructions.

Following upbeat exit poll predictions, the BSE Sensex index soared by 2,507 points (3.4%) on Monday, marking a record close at 76,469. However, the following day, the market experienced a dramatic downturn, with the Sensex plunging by 4,390 points (6%) to settle at 72,079—its steepest single-day drop in four years.

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