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Business News/ News / India/  Adani-Hindenburg Verdict: SC says ‘petitions lack adequate research’ | Chronology of Adani saga

Adani-Hindenburg Verdict: SC says ‘petitions lack adequate research’ | Chronology of Adani saga

The Supreme Court of India rejects key demands of petitioners seeking to derail the SEBI investigation into the Adani-Hindenburg case. Read the complete story to unfold the chronology of events since the controversy began.

The Supreme Court dismisses petitioners' demands, and upholds SEBI investigation in Adani-Hindenburg case. (Reuters)Premium
The Supreme Court dismisses petitioners' demands, and upholds SEBI investigation in Adani-Hindenburg case. (Reuters)

Adani-Hindenburg Case Verdict: The Supreme Court of India rejected key demands of petitioners seeking to derail the ongoing SEBI investigation into allegations raised by Hindenburg Research. The apex court dismissed reliance on a third-party report and affirmed faith in SEBI's handling of the case. 

The Government of India and the Sebi are to look into whether there is any infraction of law by the Hindenburg report on short selling and if so, take action by the law, according to the judgment.

The top court pronounced its verdict today i.e. on 3 January, on a batch of petitions seeking examination of allegations of fraud made against Adani Group of companies in the Hindenburg Research report. The pleas claimed the allegations that the Adani Group, considered close to the Modi government, inflated its share prices and, after the report of the short seller Hindenburg Research, the share value of various group entities fell sharply.

Adani-Hindenburg Case Verdict: Chronology of events

January 24: Hindenburg Research releases a report on the Adani Group companies claiming that it was "engaged in a brazen stock manipulation and accounting fraud". This came a few days before the flagship Adani Enterprises company of the Adani group will make a 20,000 crore follow-on public offer (FPO). The conglomerate has responded by calling the report "malicious" and "baseless," claiming it was created with the malicious intent to sabotage its share sale.

January 26: Adani Group says it is considering legal action against Hindenburg Research. The short seller maintains its position and declares that it will request disclosures from the business in legal proceedings.

January 27: Adani Enterprises' FPO opens for subscription. While a 1% subscription is seen in the Adani Enterprises FPO on the first day, Abu Dhabi’s International Holding contributed $400 million to the FPO in support of Adani.

January 31: The FPO was fully subscribed.

February 1: Credit Suisse's private bank halted margin loans on Adani Bonds. The Swiss lender’s private banking arm assigned a zero lending value for notes sold by Adani Ports and Special Economic Zone, Adani Green Energy, and Adani Electricity Mumbai. The same day, Adani Group stocks lost $86 billion, forcing the Securities and Exchange Board of India (SEBI) to launch a probe. Later that night, Adani Group called off the Adani Enterprises FPO.

February 2: It was revealed that the State Bank of India (SBI) had given $2.6 billion to companies in the Adani conglomerate. SBI’s exposure included $200 million from its overseas units. Also, opposition parties created an uproar in the Parliament and asked for a constitution of a Joint Parliamentary Committee (JPC) into the alleged irregularities by the Adani group of companies.

February 3: While maintaining the rating, S&P Global Ratings changed the outlook for Adani Ports and Adani Electricity from stable to negative. Effective from this day, three Adani group companies, including Adani Enterprises, came under the short-term additional surveillance measure (ASM) framework of the National Stock Exchange (NSE). LIC revealed that it held a 4.23% stake in Adani Enterprises while it held a 9.14% stake in Adani Ports and 5.96% in Adani Total Gas.

February 6: Reports suggested that bonds issued by companies in the Adani Group were no longer accepted by Standard Chartered as security for margin lending.

February 10: The Supreme Court said a strong system is needed to safeguard investor interests. It requests opinions on arguments claiming investor exploitation and "artificial crashing" of the Adani Group's stock value from both the Centre and Sebi. It also aims to form a committee of experts.

February 13: The Central government agreed with the Supreme Court's proposal to set up an expert panel to look into strengthening the regulatory mechanisms for the Indian equity market. 

February 14: Sebi informs the Supreme Court that it is looking into the claims made in the Hindeburg report against the Adani group. Additionally, it states that it is keeping an eye on market activity both before and after the report's release.

March 2: The top court orders the formation of a committee to look into the Adani Group and recommend ways to improve the legal framework that safeguards Indian investors. AM Sapre, a former SC judge, was named the committee's head. Other members of it include Somasekharan Sundaresan, KV Kamath, and Nandan Nilakeni.

April 29: To finish its investigation into the claims of stock price manipulation, Sebi petitions the Supreme Court for a six-month extension.

May 17: The Supreme Court grants time Sebi until August 14 to turn in its report regarding the Adani-Hindenburg case.

May 19: According to the Supreme Court-appointed panel, identifying the regulatory shortcomings in the Adani-Hindenburg scheme will prove to be challenging. The panel claims that it was unable to identify any repeated patterns of fictitious trading between the same parties.

Also Read: Live updates on Adani-Hindenburg case verdict

July 11: The SC bench headed by CJI Chandrachud asks Sebi about the state of the investigation into the Adani-Hindenburg case. It says the probe has to be concluded by August 14. 

August 14: Sebi wants to extend the investigation by 15 days. It claims to have looked into and looked into 24 case-related issues. "Out of the said 24 investigations/examinations, 17 are final and complete and approved by the competent authority by Sebi's extant practice and procedures," the regulator said. 

August 31: Another report is released by the Organised Crime and Corruption Reporting Project (OCCRP). It claims that "hundreds of millions" of dollars were invested through "opaque" investment funds based in Mauritius and run by partners in the promoter family in publicly traded group stocks of the Adani group companies.

November 24: In the Adani-Hindenburg case, the Supreme Court has indicated that it may issue additional directives to Sebi while holding over its decision. Sebi informs the court that it will not ask for more time to finish the investigation.

December 7: The stock market regulator has issued show-cause notices to about a dozen foreign investors that owned big chunks of Adani group companies as it seeks to lift the veil on their true ownership, two people aware of the matter said.

January 3: The Supreme Court directs the SEBI to complete its probe into two pending cases relating to allegations against the Adani group within three months. Holding that it cannot regulate SEBI's power of investigation, a bench headed by Chief Justice D Y Chandrachud noted that SEBI has completed its probe in 22 out of 24 cases relating to allegations against the Adani group.

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Published: 03 Jan 2024, 11:36 AM IST
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