Adani: Sebi should peer over any wall it runs into2 min read 24 May 2023, 12:16 AM IST
In an era of social media snippets, ‘clean chit’ posts can move markets
In an era of social media snippets, “clean chit" posts can move markets. In Adani’s case, it was no surprise that group stocks leapt on word that the report of 6 May by an expert panel appointed by India’s Supreme Court to look into their volatility had found no regulatory lapse in the context of three charges levelled by short-seller Hindenburg: that it held its listed firms more closely than allowed by law, it kept related-party deals hidden and it manipulated its stock prices. While these were denied by Adani, in spite of this week’s gains, the group’s market value has contracted sharply since those fingers were pointed this January. The panel report’s let-off was for the Securities and Exchange Board of India (Sebi) in its supervisory role, but it has probably been taken by market participants as a sign of Sebi’s own Adani probe having little to add by the time its findings are due for submission this August. However, both the complexity of this case and dramatic upshoot of Adani share prices—with a few peaking at triple-digit multiples of earnings—in the three odd years preceding the Hindenburg crash warrant a closer look at what the report said.