Plea Filed In Supreme Court, Seeks Orders To Government, SEBI To Submit Detailed Report Related to Stock Market Bloodbath

Stock Market Bloodbath: In the case of the stock market crash that took place on June 4, on the day of election results, 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.

According to some estimates, the total amount is about Rs 30 lakh crores and more than five crore investors lost huge amounts of money.

The petition was filed by advocate Vishal Tiwari, who also requested that the government and SEBI be directed to submit a status report on the orders issued on January 3. These orders pertain to the consideration of the expert committee’s suggestions, led by Justice AM Sapre, as detailed in its report on the Public Interest Litigation concerning the Adani-Hindenburg issue.

The Supreme Court stated that the Centre and SEBI ought to thoughtfully evaluate the expert committee’s recommendations and undertake any additional measures required to fortify the regulatory framework, safeguard investors, and guarantee the securities market operates smoothly.

“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,” says the plea.

“Stock market volatility again emerged. As per news reports, the loss was Rs 20 lakh crore. This again has raised question mark on the regulatory mechanism despite this court’s direction, nothing has changed,” says the application.

The BSE benchmark Sensex shot up on Monday, June 3 by 2,507 points or 3.4 percent to settle at a new closing peak of 76,469 following the exit poll predictions of a thumping BJP victory.

However, the next day on Tuesday, June 4, the equity markets witnessed a bloodbath, with the Sensex tanking 4,390 points or 6 percent to settle at 72,079.

This was the worst single-day fall in four years.

(With PTI inputs)