Home / Companies / News /  On Adani controversy, SEBI says committed to ensuring market integrity

A controversy erupted after Hindenburg Research published a report raising questions about the Adani Group and accused it of stock manipulation along with accounting fraud. The Securities and Exchange Board of India (SEBI) on Saturday said that it's committed to ensuring market integrity and structural strength.

The regulator also stated that all necessary surveillance measures are in place to address any excessive volatility in individual shares, according to the news agency PTI. 

In an official statement, the watchdog without naming the Adani Group specifically said that unusual price movement in the stocks of a business conglomerate has been observed in the past week. 

Officials confirmed that the statement has been issued in the wake of the Adani matter only.

“As part of its mandate, Sebi seeks to maintain orderly and efficient functioning of the market and has put in place a set of well-defined, publicly available surveillance measures (including the ASM framework) to address excessive volatility in specific stocks. This mechanism gets automatically triggered under certain conditions of price volatility in any stock," SEBI said as quoted by PTI. 

It further stated that in all specific entity-related matters, if any information comes to its notice, then, as per extant policies, the same is examined and after due examination, appropriate action is taken.

"Sebi has consistently followed this approach on entity-level issues and would continue to do so in the future as well," it added.

Stock exchanges BSE and NSE have put three Adani group companies -- Adani Enterprises, Adani Ports and Special Economic Zone, and Ambuja Cements -- under their short-term additional surveillance measure (ASM), which basically means that intra-day trading would require a 100 percent upfront margin and is aimed at curbing speculation and short-selling in these stocks.

US short-seller Hindenburg Research in a report on January 24 published a report on Adani Group accusing it of improper use of offshore tax havens and flagging concerns about high debt that sent the Group stocks to crash.

The group holds short positions in Adani group companies. Hindenburg Research said evidence that the Group has engaged in a 'brazen stock manipulation and accounting fraud scheme over the course of decades.'


(With PTI inputs)

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