The Centre on Monday told the Supreme Court that it was open to the suggestion to set up a committee comprising domain experts to protect investor interest in the backdrop of USbased Hindenburg Research’s damning report on the Adani group for alleged market manipulation and accounting frauds.

Solicitor-general Tushar Mehta appearing for the Union government, however, told a bench headed by Chief Justice of India D. Y. Chandrachud that the existing legal framework and statutory regulations were sufficient enough to deal with such situations.

“I have instructions to say Sebi (Securities and Exchange Board of India) and other regulatory agencies are fully equipped, not only regime wise but even otherwise to take care of the situation. However, the government has no objection for forming a committee as the suggestion fell from this court.”

“But we would suggest that remit of the committee, would be relevant because any unintentional message to foreign investors or domestic investors that the regulatory agencies need a monitoring by an expert committee may have some adverse impact on the flow of money,” Mehta told the bench which also included Justice P.S. Narasimha and Justice J.B.Pardiwala.

He said since the composition of the committee would be crucial, he would like to place the same on record in a sealed cover.

The CJ suggested the solicitor-general can give the remit of the committee by Wednesday and the court will take up the matter for hearing on Friday.

Mehta made the submission pursuant to the February 10 directions of the bench which asked the Centre and Sebi to come out with their suggestions for strengthening the regulatory framework to protect investor interests.

The top court had sought the views of Sebi and the Centre as to how to ensure putting a robust mechanism in place since the capital movement now is “seamless” in the country.

On the issue of strengthening the existing regulatory regime, the bench had mooted a committee which can comprise experts from the securities areas, the international banking sector and a “wise guiding figure in the form of a former judge”.

The bench made the oral observations while dealing with two separate PILs: one sought a direction to form a panel to inquire into the Hindenburg report. Another PIL sought prosecution of short-seller Nathan Anderson of Hindenburg Research.