‘Will extend time for probe, but..’: What SC told SEBI during Adani Group-Hindenburg report hearing
- Supreme Court told SEBI on Friday that the capital market regulator will be granted a three month extension for the probe, but not six months
The Supreme Court of India on Friday told the Securities and Exchange Board of India (SEBI) on Friday that they will grant an extension of three months to finish probe into stock manipulation by Adani group allegations made by the American short-seller Hindenburg in their report.
“We will extend the time for probe, but not for six months. We will extend the time for three months”, the Supreme Court told SEBI during the Adani group-Hindenburg report hearing on Friday.
The bench led by Chief Justice of India Dr Dhananjaya Yeshwant Chadrachud and also comprising Justices PS Narsimha and JB Pardiwala was hearing the matter on Friday almost two months after it had asked market regulator and an experts' panel to probe the matter.
On 2 March, the apex court had directed the capital market regulator SEBI to investigate any violations of securities law by the Adani Group in the wake of the Hindenburg report, which led to a massive wipeout of more than USD140 billion of the Adani Group's market value.
SEBI application seeking the extension of time has been opposed by the petitioner, Vishal Tiwari.
SEBI, in the application also submitted that for ascertaining possible violations related to misrepresentation of financials, circumvention of Regulations and/or fraudulent nature of transactions in respect of 12 suspicious transactions mentioned herein above, given the complexity of the matter, SEBI in the normal course would take at least 15 months for completion of the investigation of these transactions, but is making all reasonable endeavours to conclude the same within six months.
It had also ordered the setting up of a six-member committee headed by former apex court judge Justice A M Sapre for the assessment of the extant regulatory framework.
The apex court had set up a panel to look at providing protection to investors.
The Expert Committee is headed by Justice Abhay Manohar Sapre, a former judge of the Supreme Court of India along with other five members which include -- retired judge Justice J P Devadhar, OP Bhatt, KV Kamath, Nandan Nilekani and Somashekhar Sundaresan.
"SEBI has not expressly referred to an investigation into the alleged violation of the Securities Contracts (Regulation) Rules 1957 which provide for the maintenance of minimum public shareholding in a public limited company, and similarly, there may be various other allegations that SEBI must include in its investigation," the court had noted during the last hearing of the case.
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Business NewsNewsIndia‘Will extend time for probe, but..’: What SC told SEBI during Adani Group-Hindenburg report hearing
First Published:12 May 2023, 04:40 PM IST
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