Why Did Sammaan Capital's Shares Plummet Over 13% After Supreme Court's Critique?
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Synopsis
Sammaan Capital's share price has dramatically decreased following the Supreme Court's stern criticism of investigative agencies. As the court demands a more rigorous approach to the ongoing inquiry, the stock market's reaction raises questions about the company's future and investor confidence.
Key Takeaways
- Sammaan Capital shares fell by 13.5% after Supreme Court criticism.
- Supreme Court criticized investigative agencies for their slow response.
- Next hearing set for December 17 with updates expected from all agencies.
- SEBI's role is crucial in addressing financial irregularities.
- Stock is 19% below its 52-week high.
Mumbai, Nov 19 (NationPress) Sammaan Capital witnessed a significant drop in its share price on Wednesday, plummeting by approximately 13.5% following a strong rebuke from the Supreme Court. The court lambasted various investigative agencies for adopting what it termed a “friendly approach” in the ongoing inquiry concerning the company.
The court expressed its displeasure with the Central Bureau of Investigation (CBI), the Ministry of Corporate Affairs (MCA), and the Securities and Exchange Board of India (SEBI) for their sluggish and inconsistent actions, despite the grave nature of the allegations.
Concerned about the investigation's pace, the court noted a lack of urgency from the agencies involved.
Additionally, the court criticized SEBI for displaying “double standards”, asserting that the market regulator should not postpone action in cases involving suspected financial misconduct and potential risks to investors.
The Supreme Court clarified that SEBI has the full mandate to investigate the matter and should proceed without delay.
During the proceedings, the bench urged the CBI to file an FIR, emphasizing that this move would enhance the Enforcement Directorate’s (ED) capacity to investigate the money laundering aspects of the case. The court also inquired why the CBI had yet to file an FIR.
The ED informed the court that it plans to convene a joint meeting with the CBI, SEBI, and the Serious Fraud Investigation Office (SFIO) within two weeks to ensure improved coordination in the investigation.
The ED also highlighted that complaints lodged with the Economic Offences Wings (EoW) in both Delhi and Mumbai had not been acted upon, further delaying the case.
The next hearing has been scheduled for December 17, when the court expects all four agencies -- CBI, ED, SEBI, and SFIO -- to provide clear updates on their investigative status and action plans.
The court's stern remarks suggest that the investigation into Sammaan Capital will now undergo stricter judicial scrutiny. All agencies will need to demonstrate substantial progress and justify their actions in the weeks ahead.
In the wake of the court's comments, Sammaan Capital's stock closed at Rs 158.40, down by Rs 24.36 or 13.33% on Wednesday.
The share price is now approximately 19% below its 52-week peak of Rs 192.90, reached on November 3.
Point of View
It is imperative to recognize the escalating scrutiny surrounding Sammaan Capital. The Supreme Court's intervention signifies a critical juncture for the company, shedding light on potential financial irregularities. Our commitment remains to provide unbiased reporting on issues affecting the economy and investor interests, ensuring that our audience is well-informed.
NationPress
19/11/2025
Frequently Asked Questions
What caused Sammaan Capital's share price decline?
The decline was triggered by the Supreme Court's strong criticism of investigative agencies for their 'friendly approach' in probing allegations against the company.
What did the Supreme Court say about the investigative agencies?
The Supreme Court criticized the CBI, MCA, and SEBI for their slow and inconsistent actions, urging them to expedite the investigation.
When is the next hearing scheduled?
The next hearing is scheduled for December 17, where the court expects updates from all involved agencies.
How much did Sammaan Capital's shares drop?
Sammaan Capital's shares dropped by approximately 13.5%, closing at Rs 158.40.
What is the significance of the Supreme Court's remarks?
The court's remarks indicate increased judicial scrutiny of the investigation, requiring agencies to show substantial progress.
