SEBI Gets Supreme Court Nod To Extend Adani-Hindenburg Probe Until August

The Supreme Court has allowed the Securities and Exchange Board of India (SEBI) until August 14 to conclude its investigation into the Adani-Hindenburg affair.

What Happened? In the interim, the court ordered that parties receive copies of the report by the Justice Sapre panel to aid future deliberations. The subsequent hearing is set for July.

The regulator asked for a six-month extension to finalise its probe into the Adani-Hindenburg situation, highlighting the necessity of delivering justice. SEBI denied allegations that it had been investigating certain Adani group companies for potential legal violations since 2016.

SEBI communicated to the Supreme Court on May 15 that it hasn’t initiated any public investigation into stock exchange-listed Adani Group companies since 2016 concerning alleged misuse of global depository receipts (GDRs) for unlawful activities or any other infractions.

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Contradictory Statements: This SEBI assertion, however, conflicts with comments made by Junior Finance Minister Pankaj Chaudhary in July 2021. Chaudhary had claimed in parliament that SEBI was scrutinizing specific Adani group companies for regulatory non-compliance.

Yet, the finance ministry maintained that the government stands by its written response in the Lok Sabha, a result of meticulous analysis and input from all relevant agencies.

Gautam Adani, once Asia’s richest entrepreneur, has suffered a significant loss in his net worth since the Hindenburg report came out earlier this year. This decrease was due to a sharp fall in the bonds and stocks of the seven publicly listed Adani group companies, which saw drops between 3% to 7%.

The downward spiral followed Hindenburg Research’s report released after accusing the Adani Group of participating in a bold stock manipulation and accounting fraud scheme spanning numerous years.

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Posted In: GovernmentRegulationsAdani GroupSEBI