Adani Group Row: SEBI to update Finance Minster Nirmala Sitharaman this week, claims report

This week, the Indian market regulator will deliver an update on its inquiries into the withdrawn follow-on public offering by the Adani Group, as per the report in Economic Times.

According to reports, the Securities and Exchange Board of India (SEBI) board is slated to meet with Finance Minister Nirmala Sitharaman on February 15.

The SEBI board will update the Finance Minister on steps taken by the regulator during the recent rout in Adani Group stocks.

The Adani Group has lost more than $100 billion in the market ever since the Hindenburg report was released in January.

Earlier Adani Group hired Watchtell

The Adani Group has reportedly hired senior attorneys at Wachtell, Lipton, Rosen & Katz to assist it on how to deal with the issue the company is currently experiencing, according to a British daily news article.

The corporate law practise of the New York-based law firm specialises in corporate law, and often deals with significant and complex transactions.

Over the past week, share prices of companies in the Adani Group have dropped significantly, following the report, which alleged stock manipulation and fraud by the conglomerate.

The Adani Group has attacked Hindenburg as "an unethical short seller" and stated that the report by the New York-based entity was "nothing but a lie".

Adani Enterprises' FPO

Adani Enterprises Limited, the group's flagship company, has cancelled a fully subscribed Rs 20,000 crore follow-on public offer as a result of the group's stocks' ongoing sell-offs.

On January 29, Adani Group released a lengthy 413-page report in which it claimed that the recent Hindenburg Research research was not an attack on any particular company but rather a "calculated attack" on India, its growth trajectory, and its ambitions.

"This is not merely an unwarranted attack on any specific company but a 'calculated attack' on India, the independence, integrity and quality of Indian institutions, and the growth story and ambition of India," it said.

The following decline in share prices benefits a short seller in the securities market.