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Adani-Hindenburg Issue: SC Grants Sebi Three-Month Extension To Probe Adani Group, Seeks Report By Mid-August

Swarajya News Staff

May 17, 2023, 06:19 PM | Updated 06:19 PM IST


SEBI
SEBI

The Supreme Court has extended the Securities Exchange Board of India's deadline by three months to investigate short-seller firm Hindenburg Research's accusations of "brazen stock manipulation" and "accounting fraud" against Gautam Adani's group of companies.

The Chief Justice-led bench allowed the regulator — called Sebi, for short — until 14 August to submit the report, and has scheduled the next hearing for 11 July.

The top court also ordered the release of the report of the Justice A M Sapre committee to relevant parties so they can assist the court in the matter.

Sebi said it did not investigate any Adani Group of companies since 2016, as alleged by some of the petitioners who have requested an inquiry into claims by Hindenburg Research about the group.

The market regulator said in a rejoinder affidavit that the claim made by the petitioners in their reply affidavit had no connection to the issues arising from the Hindenburg report.

Sebi had requested an extension of six months from the Supreme Court to complete its investigation into allegations. However, the court denied the request, citing the need for greater urgency in the work.

Sebi has now received a three-month period to complete its probe, with the court advising that the regulator put together a team for the purpose and have the report ready by mid-August.

The US-based short-selling company Hindenburg Research has charged Gautam Adani's conglomerate of long-term fraud and stock manipulation.

Many petitions were filed against the Adani group in the Supreme Court thereafter. The apex court in March asked Sebi to investigate the matter, with two months given to complete the investigation at the time.


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