New Delhi
A petition has been filed in the Supreme Court, requesting that the Centre and the Securities and Exchange Board of India (SEBI) submit a detailed report on the stock market crash that occurred on June 4, the day election results were announced, causing investors to lose billions of rupees.
Filed by advocate Vishal Tiwari, the plea also seeks a status report on the implementation of orders from January 3, which called for considering the recommendations of the expert committee led by Justice AM Sapre. This committee was formed in response to the PIL concerning the Adani-Hindenburg matter.
The SC had instructed the Centre and SEBI to constructively consider the committee’s suggestions and take necessary actions to strengthen the regulatory framework, protect investors, and ensure the securities market’s orderly functioning.
The petition notes that after the exit polls for the 2024 Lok Sabha elections, the stock market surged. However, when the actual results were announced, the market plummeted. According to reports, this volatility resulted in a loss of Rs 20 lakh crore, raising concerns about the regulatory mechanisms in place.
Following predictions of a BJP victory, the BSE Sensex rose by 2,507 points (3.4%) to a record closing peak of 76,469 on Monday. However, the next day, the market saw a significant drop, with the Sensex falling 4,390 points (6%) to 72,079, marking the worst single-day decline in four years.
