The Supreme Court of India is gearing up to review a fresh status report from the Securities and Exchange Board of India (SEBI) on Oct. 13. This report delves into the allegations against the Adani conglomerate, as presented by short-seller Hindenburg Research earlier in January.
What Happened? Hindenburg had pointed fingers at the conglomerate for alleged “stock manipulation and accounting fraud”, a claim that Adani robustly refuted, branding it as a “calculated attack on India”.
While SEBI was initially set to present its findings by August 14, it sought a brief extension, finally submitting its report on August 25. Though the contents remain under wraps, insiders suggest it provides insights into 24 investigations concerning Adani’s operations. V S Sundaresan, Executive Director at SEBI, revealed that 22 of these inquiries have concluded.
However, the regulator is still awaiting key data from five tax havens linked to foreign investors in the conglomerate. This data will play a pivotal role in shaping SEBI’s final actions.
Conflicts of Interest? Earlier this month, petitioners alleged that SEBI overlooked crucial details from the Directorate of Revenue Intelligence (DRI) concerning potential stock manipulation by Adani firms. The petitioner also highlighted potential conflicts of interest in SEBI’s investigation, pointing to connections between the Adani family and members of SEBI’s Committee on Corporate Governance.
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With the Supreme Court closely monitoring four PILs on this matter, all eyes are on the upcoming review and the revelations it might bring to light.
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