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Supreme Court Slams 'Friendly' Probe: Sammaan Capital Shares Crash 13%

The Supreme Court delivered strong criticism against multiple investigative agencies for their handling of the Sammaan Capital probe. Judges expressed concern about the slow pace and inconsistent actions by CBI, SEBI, and other regulators. The court specifically called out SEBI for displaying "double standards" in addressing potential financial irregularities. This judicial scrutiny triggered a 13% stock price crash as investors reacted to the heightened regulatory pressure.

Key Points: Sammaan Capital Shares Fall After Supreme Court Probe Criticism

  • Supreme Court slammed multiple agencies for slow investigation pace
  • SEBI accused of double standards in handling financial irregularities
  • CBI pushed to file FIR to strengthen money laundering probe
  • Stock plunged 13% to Rs 158.40, 19% below 52-week high
2 min read

Sammaan Capital's shares crash over 13 pc after Supreme Court slams 'friendly' probe by agencies

Supreme Court criticizes CBI, SEBI, ED for 'friendly approach' in Sammaan Capital investigation, causing 13% stock crash. Agencies ordered to coordinate probe.

"friendly approach - Supreme Court"

Mumbai, Nov 19

Sammaan Capital’s share price fell sharply on Wednesday, dropping nearly 13.5 per cent after the Supreme Court strongly criticised multiple investigative agencies for what it described as a “friendly approach” in the ongoing probe involving the company.

The court questioned the Central Bureau of Investigation (CBI), the Ministry of Corporate Affairs (MCA), and the Securities and Exchange Board of India (SEBI) for being slow and inconsistent in their actions, despite the seriousness of the allegations.

The Supreme Court said it was concerned about the pace of the investigation and noted that the agencies did not seem eager to move forward.

It also criticised SEBI for what it called “double standards”, saying the market regulator should not delay action in a case that involves suspected financial irregularities and possible harm to investors.

The court clarified that SEBI has full authority to probe the matter and should act without hesitation.

During the hearing, the bench pushed the CBI to file an FIR, saying this step would strengthen the Enforcement Directorate’s (ED) ability to look into the money-laundering aspect of the case. The court also asked the CBI to explain why it had not filed an FIR so far.

The ED informed the court that it will hold a joint meeting with the CBI, SEBI and the Serious Fraud Investigation Office (SFIO) within two weeks to ensure better coordination in the investigation.

The ED also pointed out that complaints filed with the Economic Offences Wings (EoW) in Delhi and Mumbai were not acted upon, which slowed down the case further.

The Supreme Court has fixed the next hearing for December 17. By then, it expects all four agencies -- CBI, ED, SEBI and SFIO -- to provide clear updates on their investigation status and the steps they plan to take.

The court’s strong remarks indicate that the probe into Sammaan Capital will now face stricter judicial monitoring. All agencies will have to show solid progress and justify their actions in the coming weeks.

Following the court’s observations, Sammaan Capital’s stock closed at Rs 158.40, down by Rs 24.36 or 13.33 per cent on Wednesday.

The share is now around 19 per cent below its 52-week high of Rs 192.90, which it touched on November 3.

- IANS

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Reader Comments

A
Arjun K
I've been tracking this stock for months. The pattern was suspicious - sudden spikes without any fundamental backing. Hope the SC monitoring brings some accountability to these agencies.
R
Rohit P
"Friendly approach" - that says it all! When will our investigative agencies start working for the public instead of corporate interests? 😠
S
Sarah B
As someone who lost money in this crash, I appreciate the Supreme Court stepping in. But the damage is already done. Regulatory bodies need to be more proactive, not wait for court orders.
K
Karthik V
SEBI's double standards are concerning. They're quick to act on small investors but go slow on big players. This affects market credibility and foreign investment too.
M
Michael C
While I support the court's action, I hope this doesn't become a pattern where courts have to micromanage every investigation. Agencies should do their job properly in the first place.
D
Divya L
The joint meeting between agencies is a good step. Better coordination can prevent such delays. Hope they come up with concrete action by December 17 hearing 🙏

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