Supreme Court panel's report on Adani-Hindenburg row made public; here's what it says
2 min read 19 May 2023, 01:26 PM ISTThe panel's report revealed that empirical data showed retail investors' exposure in Adani listed stocks increased after January 24 which was the day when Hindenburg released its research report on Adani Group.
PremiumA new development has taken place in the embattled Adani Group and Hindenburg case. This time, it is the Supreme Court panel's report on the billionaire Gautam Adani's conglomerate has been made public. On Friday, according to media reports, the apex court stated that at this stage it is not possible to conclude that there was a regulatory failure on the price manipulation allegation.
The US short seller's mind-boggling report had accused Gautam Adani's port-to-energy empire of stock manipulation among other fraud allegations.
The panel's report revealed that empirical data showed retail investors' exposure in Adani listed stocks increased after January 24 which was the day when Hindenburg released its research report on Adani Group.
Also, the panel's report stated that it was difficult to arrive at a finding of a regulatory failure of the legislative side. But acknowledged that there is a need for effective enforcement policy. Hence, SC advises that the enforcement policy must be in consistent with the legislative policy adopted by Sebi.
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Furthermore, in the Adani-Hindenburg case, the report pointed out that the chain of ownership of somewhat 13 overseas entities is not clear. Also, the ultimate owner of economic interest in an FPI couldn't be ascertained. And that's why, Sebi's suspicion can't be put to rest in the absense of FPI ownership details.
Not just that, the report also mentioned, Sebi has observed some entities took short positions before Hindenburg Report, and they profited by squaring off their positions after the Nathan Anderson-backed short seller's report.
But information of somewhat 42 investors in the FPIs category is available under PMLA Rules.
After this news broke out, Adani Enterprises' stock price traded at ₹1920.70 apiece up by 1.73%. Similarly, Adani Ports jumped by 1.8% to ₹675.70 apiece.
Meanwhile, Adani Power rallied by 3.07% to ₹232 apiece, Adani Green Energy was up by 2.4% to ₹881.90 apiece, and FMCG player Adani Wilmar soared by 2.6% to ₹388.05 apiece. Lastly, Adani Transmission picked up by 0.6% to ₹755.65 apiece.
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However, Adani Total Gas traded at a fresh 52-week low of ₹633.35 apiece. This is also the stock's 5% lower circuit.
Earlier this week, Live Laws reported that the Supreme Court extended the time for the Securities and Exchange Board of India (SEBI) till August 14, 2023, to complete its probe into allegations made by US-based short seller firm Hindenburg Research against Adani group companies about stock price manipulations.
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