SEBI probe sought into June 4 stock market crash

Wednesday 12th June 2024 07:48 EDT

A plea has been filed in the Supreme Court, seeking directions to the Centre and the Securities and Exchange Board of India (SEBI) to submit a detailed report into the stock market crash on the day of election results on June 4, when investors lost billions of rupees.

The plea, filed by advocate Vishal Tiwari, also sought direction to the government and the SEBI to submit a status report on the orders given on January 3 for considering the suggestion of the expert committee, headed by Justice A M Sapre, made in its report on the PIL in Adani-Hindenburg.

The top court had said the Centre and the SEBI should constructively consider the suggestions of the expert committee and take any further action necessary to strengthen the regulatory framework, protect investors and ensure the orderly functioning of the securities market.

“It is said that after announcements of exit polls in respect to the Lok Sabha 2024 results, the share market went high, but when the actual results were announced the market crashed,” the plea said. “Stock market volatility again emerged. As per news reports, the loss was £200 bn. This again has raised question mark on the regulatory mechanism... despite this court’s direction, nothing has changed,” the petition said.

Following the exit poll prediction of a resounding BJP victory, BSE benchmark Sensex shot up on Monday by 2,507 points or 3.4 per cent to settle at a new closing peak of 76,469.

However, a day later on Tuesday, the equity markets witnessed a bloodbath, with the Sensex tanking 4,390 points or 6 per cent to settle at 72,079. This was the worst single-day fall in four years.

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