Adani-Hindenburg case: SEBI files fresh affidavit in SC; cautions against premature conclusion of probe

The market regulator Securities and Exchange Board of India (SEBI) ahead of its hearing has filed a fresh affidavit in the Supreme Court on allegations of probing Adani Group since 2016 that says SEBI was conducting probe into GDR and has not listed Adani as part of the 51 companies that were under investigation. Further SEBI has reiterated its plea for 6 months.

The petitioners had alleged that SEBI was investigating the Adani Group since 2016. But according to SEBI's affidavit no listed Adani company was part of the 51 companies that were under Global Depository Receipts investigation. SEBI called the allegations by the petitioners as factually baseless.

Why does SEBI need additional time?

SEBI said that it had already reached out to 11 overseas regulators and a note has been sent to the expert panel on the status of requests made with overseas regulators. SEBI also stated that the 12 transactions referred to in the Hindenburg report were highly complex and there is a need to analyse them before reaching any conclusion.

SEBI further added that if there are any premature conclusions then the probe into the lapses by Gautam Adani's companies would not serve the interest of justice.

SC granted three months to SEBI

SC on Friday said that it will consider granting three months to SEBI to wrap up the investigation into the allegations of stock price manipulation by the Adani group. The apex court had said that inorder to verify if there were any regulatory failures an expert committee was appointed and it had already submitted its report.

Justice D Y Chandrachud who is heading the bench said, "There has to be some sense of responsibility.. You must be conscious of the fact that whatever allegations you make, it affects the stability and volatility of the stock market."