‘No conclusions of any alleged wrong-doing’ Adani Group on SEBI’s 6 month extension request to complete Hindenburg probe

After Sebi asked the Supreme Court for a 6-month extension to finish its investigation into the Hindenburg allegations made against the Adani Group, the Gautam Adani-led conglomerate responded saying it is fully cooperating with the probe.

"We understand that Sebi has approached the Hon'ble Supreme Court for more time to conclude its investigation," the statement further said.

"We have welcomed the investigation, which represents a fair opportunity for everyone to be heard and for all issues to be addressed. We are fully compliant with all laws, rules and regulations and are confident that truth will prevail. We are fully cooperating with Sebi and will continue to provide all our support and cooperation," the statement added.

It is pertinent to note that in the Sebi application filed before the Hon'ble Supreme Court, there are no conclusions of any alleged wrong-doing. The Sebi application only cites the allegations made in the short-sellers report, which are still under investigation, the statement said.

"While we continue to remain focused on our business and growth, we would request the media to avoid needless speculation at this time and wait for Sebi and the Expert Committee appointed by the Hon'ble Supreme Court to complete their work and submit their findings," the statement said.

A US-based short seller charged 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.

Supreme Court on March 2 set up an expert committee on the issue arising from the Hindenburg Research report on Adani Group companies. The committee will consist of six members, headed by former apex court judge Justice AM Sapre. The top court had then asked Sebi to file a status report within two months.

What Sebi said?

On Saturday, Sebi has urged the Supreme Court to extend the time to conclude the investigation.

In an application moved before the Supreme Court, SEBI submitted that it would take further time to arrive at verified findings and conclude the investigation.

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, 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.