Adani-Hindenburg: Market regulator SEBI seeks six-month extension to complete probe
Market regulator Securities and Exchange Board of India (SEBI) on Saturday moved the Supreme Court seeking a six-month extension to complete its investigation into allegations of stock price manipulation by the Adani Group. On March 2, the apex court directed SEBI to complete its probe and submit a status report in two months.
“Pass an order extending the time to conclude the investigation as directed by this Court by the common order dated March 2 by a period of 6 months or such other period as this court may deem fit and necessary in the facts and circumstances of the present case,” read the plea filed by SEBI.
The regulator, however, informed it had submitted a detailed report and prima facie findings to the Expert Committee constituted by the court. It listed as many as eight possible violations that required more time to complete the probe.
“Given the complexity of the matter, 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,” SEBI added in the plea.
In March, the bench led by the Chief Justice of India ordered SEBI to investigate whether the conglomerate failed to disclose transactions with related parties to the regulator and if it manipulated the stock prices.
Prior to constituting the committee, the court took a grim view of the rout in shares of the Adani Group and stated that Indian investors need to be protected against market volatility.
It was only after the apex court took a stern view that the central government agreed to the proposal of setting up the committee. The panel has the likes of OP Bhat (former Chairman of SBI), retired Justice JP Devdat, KV Kamath, Nandan Nilakeni and Somasekharan Sundaresan who will now study SEBI’s preliminary report.
The Gautam Adani-owned conglomerate has been under the scanner ever since US short-seller Hindenburg Research raised questions about the group’s debt levels and use of tax havens.
In the brutal fallout of Hindenburg’s report, investors dumped Adani shares while the company was forced to abandon a $2.5 billion share sale. The group, meanwhile, has denied the allegations and has rubbished subsequent exposé reports claiming it had tapered down its growth projections and that it had not repaid loans against promoter’s shares.
(With inputs from agencies)
