BackAdani-Hindenburg: Supreme Court gives SEBI extension till August 14 to complete probe
SEBI informed the Supreme Court on May 15 that it had not conducted any public investigation into Adani group companies, listed on the stock exchange, since 2016 regarding the suspected misuse of global depository receipts (GDRs) for illicit purposes or any other violations.
PremiumThe Securities and Exchange Board of India (SEBI) has received an extension of time till August 14 to complete its probe into the Adani-Hindenburg episode.
The Supreme Court has also directed that the copies of the report submitted by the Justice Sapre panel will be given to the parties in the meantime to enable them assist in further deliberations. The next hearing will be held in July.
SEBI informed the Supreme Court on May 15 that it had not conducted any public investigation into Adani group companies, listed on the stock exchange, since 2016 regarding the suspected misuse of global depository receipts (GDRs) for illicit purposes or any other violations.
Also Read: 'False and baseless', Mauritius minister rejects Hindenburg claims on Adani group
It requested an extension of six months to complete its investigation into the Adani-Hindenburg incident, emphasising the importance of ensuring justice. The regulator refuted the claim that certain Adani group companies have been under scrutiny for potential law breaches since 2016.
However, Sebi's statement contradicted the remarks made by junior finance minister Pankaj Chaudhary in July 2021, when he stated in parliament that SEBI was investigating specific Adani group companies for non-compliance with regulations.
Also Read: Hindenburg Research: All you need to know about US-based research team that shorted Adani Group stock
The finance ministry, on the other hand, stated that the government stood by its written response in Lok Sabha, which was based on a diligent examination and inputs from all relevant agencies.
Gautam Adani, then Asia's wealthiest person, experienced a substantial decline in his net worth within a single day. This decline was triggered by a sharp drop in the bonds and stocks of the seven publicly listed Adani group companies, which witnessed declines ranging from 3% to 7%.
The downward trend occurred following the release of a report by Hindenburg Research, alleging that the Adani Group had been involved in an audacious scheme of stock manipulation and accounting fraud spanning several decades.
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