Adani-Hindenburg case: SC adjourns hearing SEBI's plea for extension of probe
SEBI told the Supreme Court on May 15 that any incorrect or premature conclusion of its investigation into the Adani group's possible lapses of regulatory disclosures will be ‘legally untenable’ and not serve the ends of justice.
PremiumThe Supreme Court has adjourned the hearing of the plea filed by capital markets regulator Securities and Exchange Board of India (SEBI) seeking a six-month extension to complete the probe on Adani Group to July 10, according to CNBC-TV18. SEBI told the Supreme Court on May 15 that any incorrect or premature conclusion of its investigation into the Adani group's possible lapses of regulatory disclosures will be "legally untenable" and not "serve the ends of justice".
SEBI, in a filing, said it has approached 11 overseas regulators for information relating to whether the Adani group has violated any norms regarding its publicly available shares.
Earlier, SEBI had asked the apex court for a six-month extension to finish its investigation into allegations levelled by US-based short seller Hindenburg against the conglomerate, noting that Adani Group's complex transactions involving listed, unlisted and offshore entities require deeper investigations.
Also Read: Two Adani Group stocks excluded in MSCI India's rejig
To ascertain possible violations related to misrepresentation of financials, circumvention of Regulations, and investigate the fraudulent nature of transactions mentioned in the Hindenburg report, it would take in the normal course at least 15 months, said SEBI in its application.
However, the top court, in verbal arguments, said that it was inclined to give a three-month extension. The verbal arguments do not necessarily match the final court order, which will likely be given on SC's new hearing date.
On March 2, the Supreme Court had set up an expert committee on the issue arising from the Hindenburg Research report on Adani Group companies. The top court directed Sebi to investigate whether there had been a violation of Section 19 of Sebi rules and whether there was any manipulation of stock prices.
Earlier this year, Hindenburg levelled allegations on the Adani Group with financial wrongdoings in its investigation on February 25. Following that, the market capitalization of the Adani Group plummeted as a result by more than USD 140 billion.
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