A petition has been filed in the Supreme Court, demanding a report from the Securities and Exchange Board of India (SEBI) and the Indian government regarding the stock market crash on June 4.

What Happened: The plea was submitted by lawyer Vishal Tiwari on June 7, as a part of the Adani Hindenburg writ petition. It also requests the court to instruct SEBI to submit its investigation report on the Adani-Hindenburg issue and a status report on the implementation of reforms suggested by an expert committee.

The petition highlights that despite the court’s directive to SEBI to implement the committee’s reforms, no documentation has been filed to confirm their implementation.

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"That still whether the SEBI has completed the pending Investigations in compliance of the court order and has submitted any record before the Hon. Court is not evident and done SEBI has not apprised the Hon. Court or public visibly in any manner."

The petition also emphasizes the public’s right to know about these matters.

Why It Matters: The stock market crash on June 4 followed the unexpected results of the Lok Sabha elections. The BJP-led NDA secured a majority, but the BJP itself fell short of a majority, contrary to many exit polls’ predictions.

This led to the Indian stocks suffering their worst intraday fall since March 2020. The NSE Nifty 50 index closed down 5.93% at 21,884.5 points, and the S&P BSE Sensex fell 5.74% to 72,079.05.

On the same day, Zerodha recorded a staggering 34.5 million trading orders on its platform, coinciding with the worst stock market crash in four years. This resulted in a loss of ₹29.9 lakh crore in the market capitalization of all listed companies on the BSE.

Despite the market crash, esteemed investor Mark Mobius predicted that the Sensex is expected to reach the 1 lakh mark within the next five years. This forecast suggested a continued upward trend in the market, despite potential political changes.

Following the election results, the Indian market continued its strong recovery as Narendra Modi‘s path to a third term in the prime minister's office became clear. Analysts at global brokerage firm CLSA were optimistic about the prospects for Modi 3.0, powered by support from political allies.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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