The Court clarified that in the current case, SEBI did not fail in its regulatory duties. It emphasized that SEBI shouldn’t be expected to operate solely based on press reports, even though such reports could be considered as inputs for the regulatory body.

“Investigative reports by press can act as inputs for SEBI but cannot be taken as credible evidence or a proof of regulatory failure by SEBI and it cannot cast doubt on the investigation being carried on by a statutory body,” the Court stated

The court clarified that investigative reports from the press may be considered as inputs for SEBI. The court firmly stated that it cannot cast doubt on the ongoing investigation conducted by a statutory body.

As a result, the court rejected the plea for an investigation by the Central Bureau of Investigation (CBI) or any other agency. It pointed out that while the court has the authority under Article 32 and 142 to transfer the probe to agencies like the CBI, such powers should be used sparingly. The court emphasized that it will not typically replace the role of investigative agencies unless strong evidence is presented to demonstrate bias on the part of the regulatory body (SEBI).

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