Adani-Hindenburg row: SC to study panel report, decide SEBI probe extension on May 15
The Supreme Court on Friday said that it will first go through the report submitted by the court-appointed committee and will then decide whether to allow market regulator SEBI’s plea seeking extension of time to complete the investigation in the Adani-Hindenburg issue.
The court has slated the matter for further consideration on Monday, May 15.
A three-judge special bench headed by Chief Justice of India DY Chandrachud said the interim report submitted by former Supreme Court judge Justice AM Sapre is in the registry and they haven’t got the time to see the report.
“We will go through the report and keep this application seeking extension of time for orders on Monday,” the CJI told Solicitor General Tushar Mehta, appearing for SEBI.
During the brief hearing, Solicitor General Tushar Mehta told the bench that investigation is being done but will need more time to complete the same and said, “We are here to assist this court. We are investigating some transactions for 2016, which is completely different. We have written to the international agency also. And I am asking for six months’ time with much responsibility.”
Objecting to the extension of time, Advocate Prashant Bhushan, appearing for a petitioner in the case, said SEBI should at least disclose what it has done so far.
Bhushan also told the bench that SEBI is a member of the International Organisation of Securities Commission and hence there was no difficulty in getting information from foreign countries regarding international transactions.
At this, the CJI said, “It would not be proper at this stage to ask them to reveal what they have found in investigation. Let us see. But we agree with you that they cannot go on indefinitely.”
SEBI in its plea has sought a minimum six months more to complete its inquiry into the Hindenburg allegations.
However, during the hearing the bench indicated that it won’t give six months’ time but could consider giving three months more for the probe to complete.
“You complete your investigation in three months and come back to us. There has to be alacrity,” the CJI told the Solicitor General.
Another petitioner also opposed the extension of time and said, “There is a regulatory failure.”
This angered the CJI, who said, “The committee is constituted to say that there was a regulatory failure, you cannot stand here and say that there was regulatory failure because whatever you say here affects stock markets. Let us be responsible. It is easy to stand and make allegations.”
Earlier this year, the top court had directed SEBI to investigate certain aspects of the issues raised in a batch of petitions before it, as part of its ongoing investigation.
The issues under probe included violation of the Securities Contracts (Regulation) Rules, 1957, failure to disclose transaction, manipulation of stock prices, etc.
