Petition filed in Supreme Court demands Centre and SEBI to provide report on stock market crash

A request has been made to the Supreme Court for the Centre and SEBI to submit a comprehensive report on the stock market crash on June 4 linked to the election results, causing significant financial losses for investors.

Lawyer Vishal Tiwari has submitted the petition, which also seeks guidance from the authorities and SEBI to present an update on the decisions made on January 3 concerning the evaluation of the expert committee's recommendations. Justice A M Sapre led a committee that provided suggestions in its report on the PIL regarding the Adani-Hindenburg issue.

The highest court stated that the Centre and the SEBI should actively review the recommendations of the expert committee and implement any additional measures essential to enhance the regulatory framework, safeguard investors, and maintain the smooth operation of the securities market. The plea mentioned that the stock market rose after the release of exit poll results for the Lok Sabha 2024, but plummeted once the final results were announced.

"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.

Following the release of exit polls showing a big win for the BJP, the BSE benchmark Sensex rose sharply on Monday, increasing by 2,507 points or 3.4% to hit a record closing level of 76,469. On the next day, Tuesday, there was a significant decrease in stock markets, as the Sensex dropped by 4,390 points or 6 percent to close at 72,079. This is the biggest drop in one day in the past four years.