Adani-Hindenburg row: SC to hear matter, consider SEBI petition for extension of probe
In the ongoing SEBI investigation in the Adani-Hindenburg row, Supreme Court will hear SEBI's plea to extend time for investigation by 6 months
PremiumThe Supreme Court will hear petitions on the Adani-Hindenburg row on Thursday. The apex court will also hear SEBI's plea demanding 6 months extension to conclude its investigation of the Hindenburg report on Friday. Earlier, the court had ordered the Securities and Exchange Board of India (SEBI) to complete its probe into the matter within two months.
The SEBI application demanding an extension of time has been opposed by the petitioner Vishal Tiwari. The bench will be led by the Chief Justice of India Dr Dhananjaya Yeshwant Chandrachud. It will comprise Justices P S Narsimha and JB Pardiwala, reported PTI.
The Indian regulatory body informed the apex court that it would take further time to arrive at verified findings and conclude the investigation.
In its application to SC, SEBI also submitted that given the complexity of the case, it would take around 15 months to complete the investigation. But it is trying to conclude the investigation within six months.
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.
"Applicant/SEBI, in the forgoing circumstances, most respectfully submits that to enable SEBI to conduct a proper investigation and arrive at verified findings, it would be just, expedient, and in the interest of justice that this Court may be pleased to extend the time to conclude the investigations as directed in the common order dated 02.03.2023, by at least 6 months," SEBI said.
Notably, a US-based short seller, Hindenburg in its report accused the Adani group of stock manipulation and faulty transactions. In view of the report, which was followed by a furious uproar on the political as well as financial front, the Supreme Court, on March 2, directed SEBI to investigate on Hindenburg report.
SEBI was directed by the Supreme Court to investigate whether there is any violation of Rule 19A of the Securities Contracts (Regulation) Rules, 1957; any failure to disclose transactions with related parties, stock manipulation, etc.
The Supreme Court also constituted a six-member committee, led by former Justice Abhay Manohar Sapre to evaluate the extant regulatory framework to protect investors against volatility and for making recommendations to strengthen it. The committee also includes retired judge Justice J P Devadhar, OP Bhatt, KV Kamath, Nandan Nilekani, and Somashekhar Sundaresan.
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