Adani vs Hindenburg: Govt says won't undermine SEBI's competence, but doesn't object to expert panel

The Adani vs Hindenburg fiasco, which has led to a rout in its group stocks and caused volatility in Indian markets, has entered the country's apex court. The Supreme Court has started hearing the case, after asking for a response from the solicitor general on an expert panel to investigate the Hindenburg report. It has also directed market regulator SEBI and the Union Home Ministry to register an FIR against Hindenburg Research and its founder Nathan Anderson.

Ready to provide inputs on panel

India's central government has told the court that it won't undermine the Securities and Exchange Board's competence to regulate Indian markets. It will also submit suggestions for the panel, which the SC has recommended, with a former judge as the head.

SEBI has already been monitoring the markets, and is reportedly looking into the follow on share sale, which was cancelled by Adani, despite being oversubscribed. The government told the court that while it won't undermine the competence of agencies, it is ready to recommend names for an expert committee.

Government stands by agencies

The court had asked the government to respond on the matter after a PIL asked for a panel, headed by a retired SC judge, to probe the Hindenburg report. As for the Finance Minister, she has time and again expressed confidence in the ability of institutions such as SEBI and RBI to look into irregularities.

After the Hindenburg report, the Adani Group's stocks have been downgraded by Moody's, and its French partner has put a project on hold pending an audit. The market watchdog in the UK is also investigating Elara Capital, a firm which is linked to Adani, and whose Mauritius-based fund was named in the report.