The Supreme Court on Monday asked Sebi as to why it should not be directed to probe IL&FS fraud and protect investors. While extending its earlier order that stayed payment obligations till August 13, the next date of hearing, a Bench comprising justices Mohan M Shantanagoudar and Sanjiv Khanna said that the market regulator should look into the issue as it also has adjudicatory powers.
“Why are you shirking from this? Lot of third parties have played fraud. That is the allegation. As a market regulator, you have to decide it as you have adjudicatory powers as well,” the Bench said. It also told senior counsel Arvind Dattar, appearing for Sebi, that “to protect society, we can direct you. You are saying regulations doesn’t give you jurisdiction to do so… but regulations are made by you. Does your regulations then require a change? “People/investors have confidence in you. You are the boss,” the judges said.
