Investors need protection from fraud, toxic products and mis-selling. Not from volatility. The Supreme Court may consider widening the terms of the panel on investor protection


The Supreme Court (SC) has advised the government to set up a committee to review the current investor protection regime in light of the recent crash in the Adani Group’s stocks. The government has accepted the advice, and the court will now decide the remit and composition of the committee. These events come as a consequence of the sharp drop in shares of Adani Group companies due to a negative report by Hindenburg Research on January 24. Hindenburg also announced it was short on Adani debt and derivatives (short-selling is a strategy of traders who bet that prices will go down and, therefore, place trades to benefit from it), leading a rout that dissolved an estimated 10 trillion of notional investor wealth.

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