Adani Group Investigation: Supreme Court Delays SEBI's Request for Probe Extension
In a recent development regarding the Adani Group investigation, the Supreme Court has deferred the hearing of the plea filed by SEBI, the capital markets regulator in India. SEBI had sought a six-month extension to complete its probe into the allegations leveled by US-based short seller Hindenburg against the Adani Group. This decision came to light through a report by CNBC-TV18.
SEBI emphasized during the hearing on May 15 that prematurely drawing incorrect conclusions or rushing the investigation into potential lapses in regulatory disclosures by the Adani Group would be legally unsustainable and would not serve the interests of
The regulatory body stated in its filing that it has reached out to 11 international regulators to gather information on whether the Adani Group has violated any norms pertaining to its publicly available shares. The Adani Group's complex transactions involving listed, unlisted, and offshore entities necessitate a thorough investigation, according to SEBI.
To determine possible violations related to financial misrepresentation, regulatory circumvention, and investigate the alleged fraudulent nature of transactions mentioned in the Hindenburg report, SEBI estimated that it would take at least 15 months under normal circumstances, as mentioned in its application.
However, the Supreme Court, based on the
“ Stay ahead of the news with The Speed Express. We delivers the latest, most accurate and relevant information on politics, business, sports, entertainment and more. Get informed, always. ”
arguments presented, expressed an inclination to grant a three-month extension instead of the requested six months. It is important to note that the verbal arguments do not necessarily align with the final court order, which is expected to be issued on the new hearing date set by the Supreme Court.
Earlier this year, on March 2, the Supreme Court had established an expert committee to address the issues raised by the Hindenburg Research report on Adani Group companies. The court entrusted SEBI with the task of investigating whether there have been any violations of Section 19 of SEBI rules
whether there has been any manipulation of stock prices.
The allegations made by Hindenburg against the Adani Group, which surfaced on February 25, led to a significant decline in the conglomerate's market capitalization. The financial wrongdoings mentioned in Hindenburg's investigation caused the Adani Group's market value to plummet by more than USD 140 billion.
This ongoing case has garnered significant attention and is being closely followed by market participants and observers alike. As the Supreme Court postpones the hearing and deliberates on SEBI's extension request, the fate of the investigation into the Adani Group's regulatory disclosures and financial practices remains uncertain.