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Stock market crash: Plea in Supreme Court seeks direction to Centre, SEBI to submit report

On June 4, the stock market witnessed a steep selloff, resulting in a massive loss of approximately Rs 20 lakh crore within the first 20 minutes of trading.

Edited By: Arushi Jaiswal @JaiswalArushi New Delhi Published on: June 09, 2024 16:09 IST
Stock market crash, Supreme Court
Image Source : FILE PHOTO Supreme Court

Stock market crash: A plea has been filed in the Supreme Court, requesting that the Centre and the Securities and Exchange Board of India (SEBI) provide a detailed report on the stock market crash that occurred on June 4, the day of the election results, which resulted in investors losing billions of rupees.

Advocate Vishal Tiwari has filed the plea, which also requests direction from the government and SEBI to provide a status report on the orders issued on January 3 regarding the consideration of the expert committee's suggestions. This committee, chaired by Justice A M Sapre, had made recommendations in its report on the PIL concerning the Adani-Hindenburg matter.

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 Rs 20 lakh crore. This again has raised question mark on the regulatory mechanism... despite this court's direction, nothing has changed," the petition said.

After exit polls indicated a significant BJP victory, the BSE benchmark Sensex surged on Monday, climbing by 2,507 points or 3.4 per cent to reach a new closing high of 76,469. However, the following day, Tuesday, saw a drastic downturn in equity markets, with the Sensex plummeting by 4,390 points or 6 per cent to settle at 72,079. This marked the most severe single-day decline in four years.

Also Read: 'Rahul Gandhi misleading investors, can't handle loss': Piyush Goyal on 'stock market scam' charge

Also Read: Rahul Gandhi demands JPC to probe 'biggest stock market scam', attacks PM Modi and Amit Shah



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