India's top court, hearing two petitions related to large investor losses following a report by a U.S. short seller on the Adani conglomerate, said on Friday that investor interests need to be protected.
"Now the stock market is not a place where only high-value investors invest. It is also a place where ... investment is made by a wide spectrum of the middle class," Chief Justice D.Y. Chandrachud said.
"The point of concern here is how (to) ... protect the interest of investors," Chandrachud said.
The petitions were filed days after the Jan. 24 report by New York-based Hindenburg Research, which accused the Adani group of improper use of offshore tax havens and stock manipulation.
The ports-to-energy conglomerate, controlled by billionaire Gautam Adani, one of the world's richest people, has seen shares in its seven companies lose more than $100 billion in market value since the report was made public. Adani has denied the charges.
The petitions were filed under a provision of Indian law that allows any individual to raise an issue concerning public interest before the Supreme Court.
Chandrachud is part of a three-judge bench hearing the petitions, one of which asks the court to take action against Nathan Anderson, who runs Hindenburg Research, for causing investor losses via short selling.
The hearings will continue on Monday.
Last week, the group's flagship entity Adani Enterprises ADEL.NS pulled its secondary share offering, India's largest ever, because of the selloff.
On Friday, rating agency Moody's downgraded the rating outlook for some of the group's entities in the latest in a series of blows for the group.
(Reuters)
Karan Johar and Smriti Irani