Vijashri Tiwari v. Union of India
2024:AHC:94195
Case Summary
[Judicial Review]
[SEBI Act]
Facts
Following significant investor losses and market instability from a report by Hindenburg Research on alleged misconduct by the Adani Group, petitioners sought a court-monitored investigation, citing alleged regulatory failures by SEBI and other authorities.
Issues
1. Whether SEBI’s regulatory framework could be subjected to judicial review.
2. Whether an investigation transfer to a Special Investigation Team (SIT) was justified.
Relevant Legal Provisions
- SEBI Act, 1992
- Articles 32 and 142 of the Constitution of India
Judgment
The Supreme Court held that judicial review of SEBI’s policies is limited to instances of fundamental rights violations, statutory non-compliance, or manifest arbitrariness. The court did not find sufficient cause for SEBI’s investigation transfer but directed SEBI to expedite pending investigations. SEBI and other regulatory bodies were advised to strengthen protections for investors and ensure market transparency.
Rishita Vanjani
2nd year
Amity University Rajasthan
Komen