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Supreme Court Slams Regulators Over Sammaan Capital Probe
19 Nov
Summary
- Supreme Court ordered CBI to file an FIR against Sammaan Capital.
- Court criticized CBI and MCA for a 'friendly approach' in probe.
- SEBI's reluctance to investigate Sammaan Capital was questioned.
Shares of Sammaan Capital, formerly Indiabulls Housing Finance, experienced a significant drop of up to 14% after the Supreme Court mandated the Central Bureau of Investigation (CBI) to file a First Information Report (FIR) concerning the company. During the hearing, the apex court expressed strong disapproval of the CBI and the Ministry of Corporate Affairs' handling of the allegations, describing their approach as unusually "friendly."
The bench also raised concerns about the Securities and Exchange Board of India's (SEBI) apparent reluctance to initiate a probe, indicating possible "double standards" given SEBI's prior jurisdiction in such matters. The CBI has been directed to clarify its stance, with the court noting that an FIR would aid the Enforcement Directorate's ongoing investigation. Consequently, the ED plans to organize a joint meeting with representatives from SEBI, SBI, and SFIO within the next fortnight.
Sammaan Capital, a promoter-less company with over 4.50 lakh public shareholders, including major investors like BlackRock and LIC, asserted that all relevant regulatory bodies, including the RBI, NHB, MCA, SEBI, ED, CBI, and EOW, had previously examined the raised allegations and found no irregularities. The company emphasized that its former promoter had exited in 2022-23 and no longer held any shares.
