The matter of huge fall in the stock market on the day of Lok Sabha election results reached the Supreme Court, know the whole matter

New Delhi : A petition has been filed in the Supreme Court requesting that the Center and the Securities and Exchange Board of India (SEBI) be directed to submit a detailed report on the massive fall in the stock market on the day of the Lok Sabha election results on June 4. The petition filed by lawyer Vishal Tiwari also urged the government and SEBI to submit a status report on the orders given on January 3 to consider the suggestion of the expert committee headed by Justice AM Sapre on the PIL in the Adani-Hindenburg case.

The apex court had said that the Centre and SEBI should constructively consider the suggestions of the expert committee and take necessary action to strengthen the regulatory framework, protect investors and ensure orderly functioning of the securities market.

“It is said that after the declaration of exit polls regarding the results of Lok Sabha elections 2024, the stock market rose but when the actual results were declared, the market crashed,” the petition said.

It said, “Volatility has re-emerged in the stock market. As per news reports, there was a loss of Rs 20 lakh crore. This has again raised questions on the regulatory mechanism… Despite the court’s direction, nothing has changed.”

The BSE Sensex rose 2,507 points or 3.4 per cent to close at 76,469 last Monday after exit polls predicted a landslide victory for the BJP. However, a day later on Tuesday, the stock markets witnessed a massive fall and the Sensex tumbled 4,390 points or six per cent to close at 72,079. This was the biggest single-day fall in the last four years.

The main opposition Congress has also raised the issue of the huge fall in the stock market on June 4 and demanded an investigation by a joint parliamentary committee. Rahul Gandhi held a press conference and called it a ‘scam’ and attacked PM Modi and Home Minister Amit Shah.