Editor's Pick: Adani case | Centre agrees to SC panel

The Centre and the Securities and Exchange Board of India (SEBI) on Monday said they have no objection to the Supreme Court constituting an expert committee to examine the existing regulatory regime and frameworks in the securities market to protect investors from share value meltdowns such as the one seen in the Adani Group, triggered by the U.S.-based short-seller Hindenburg Research report. The Centre and the SEBI, however, urged a three-judge Bench led by CJI D.Y. Chandrachud to allow them to “suggest” to the court the committee’s mandate and the names of its members in a sealed cover to protect the market from any upsets. Solicitor-General Tushar Mehta, appearing for the Centre and the SEBI, explained that it may not be “appropriate” to discuss the government’s suggestions in open court as they “may or may not appeal to Your Lordships”. The court asked Mr. Mehta to prepare a note on the proposed mandate and bring it on Friday (February 17), the next date of hearing. A 22-page submission note shared by the SEBI in court said the market regulator was already enquiring into the allegations made in the report as well as the market activity immediately preceding and post its publication to identify violations of regulations. Here’s an explainer on Hindenburg Research and how a short seller operates. Meanwhile, shares of Adani group companies settled lower on Monday, with flagship company Adani Enterprises witnessing a 7% slump after credit rating firm Moody’s revised the rating outlook on four companies of the conglomerate to ‘negative’ from ‘stable’. Amidst continuing slide in its stocks, the embattled Adani Group sought to assure that the group entities have “cash-generating assets” and its “plans are on track”. They stressed that the group’s firms had already prepaid approximately $1.1 billion ahead of the scheduled September 2024. On Monday, the Ministry of Finance said that five State-run general insurance companies have a total exposure of ₹347.64 crore, or 0.14% of their total assets under management, in the Adani group of companies. In reply to a question on details of money lent by banks and financial institutions to the Adani group, the ministry told the Lok Sabha that the RBI Act prohibits disclosure of credit information submitted by a bank. The Hindu’s Editorials Honour of office: On new Governors of States appointed by the Centre Not a pipe dream: On marquee schemes of the central government The Hindu’s Daily News Quiz Which football team claimed the Club World Cup for the record fifth time? Arsenal Real Madrid Barcelona Villa Real To know the answer and to play the full quiz, click here. [logo] Editor's Pick 14 FEBRUARY 2023 [The Hindu logo] In the Editor's Pick newsletter, The Hindu explains why a story was important enough to be carried on the front page of today's edition of our newspaper. [Arrow]( [Open in browser]( [Mail icon]( [More newsletters]( Adani case | Centre agrees to SC panel The Centre and the Securities and Exchange Board of India (SEBI) on Monday said [they have no objection to the Supreme Court constituting an expert committee]( to examine the existing regulatory regime and frameworks in the securities market to protect investors from share value meltdowns such as the one seen in the Adani Group, triggered by the U.S.-based short-seller Hindenburg Research report. The Centre and the SEBI, however, urged a three-judge Bench led by CJI D.Y. Chandrachud to allow them to “suggest” to the court the committee’s mandate and the names of its members in a sealed cover to protect the market from any upsets. Solicitor-General Tushar Mehta, appearing for the Centre and the SEBI, explained that it may not be “appropriate” to discuss the government’s suggestions in open court as they “may or may not appeal to Your Lordships”. The court asked Mr. Mehta to prepare a note on the proposed mandate and bring it on Friday (February 17), the next date of hearing. A 22-page submission note shared by the SEBI in court said the market regulator was already enquiring into the allegations made in the report as well as the market activity immediately preceding and post its publication to identify violations of regulations. [Here’s an explainer]( on Hindenburg Research and how a short seller operates. Meanwhile, [shares of Adani group companies settled lower]( on Monday, with flagship company Adani Enterprises witnessing a 7% slump after credit rating firm Moody’s revised the rating outlook on four companies of the conglomerate to ‘negative’ from ‘stable’. Amidst continuing slide in its stocks, the embattled [Adani Group sought to assure]( that the group entities have “cash-generating assets” and its “plans are on track”. They stressed that the group’s firms had already prepaid approximately $1.1 billion ahead of the scheduled September 2024. On Monday, the Ministry of Finance said that five State-run general insurance companies have a [total exposure of ₹347.64 crore]( or 0.14% of their total assets under management, in the Adani group of companies. In reply to a question on details of money lent by banks and financial institutions to the Adani group, the ministry told the Lok Sabha that the RBI Act prohibits disclosure of credit information submitted by a bank. The Hindu’s Editorials [Arrow][Honour of office: On new Governors of States appointed by the Centre]( [Arrow][Not a pipe dream: On marquee schemes of the central government]( The Hindu’s Daily News Quiz Which football team claimed the Club World Cup for the record fifth time? - Arsenal - Real Madrid - Barcelona - Villa Real To know the answer and to play the full quiz, [click here](. 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