The Supreme Court on Wednesday gave the Securities and Exchange board of India till August 14 to file its investigation report on the Adani Group. The court reiterated that it cannot give an indefinite extension for completing the probe considering that it has already granted Sebi five months for investigation.
The court stated that Sebi can share status into the probe in August and the court will take into consideration any genuine issues faced by Sebi.
The Supreme Court said, "We initially allowed you 2 months, have now granted 3 more months, have effectively given you 5 months. Sebi can share the status of the probe in August, if there's a genuine issue we will consider."
Sebi asked for a 6-month extension
SEBI had asked for a six-month extension to submit its report insisting on thorough probe into the Adani Group's dealings. It had also warned 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 asks committee to assist court
The Chief Justice D.Y. Chandrachud in the order stated that the expert committee has submitted a report and in order for the court and counsel to analyse the report the proceedings will be listed after summer recess. Further the order has asked the committee to assist the court and take up further aspects or suggestions for the proceedings.
The lead petitioner in the case told the court that the regulator has not yet informed the SC of the members that it has appointed for conducting the investigation on the Adani Group.
Discussing Sebi's past investigation in Adani Group
SEBI on Monday had 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.
Senior Advocate, Prashant Bhushan told SC that Sebi despite multiple complaints didn't do anything. Bhushan said, "If Adani's companies shares increase abnormally in a short span on one year, alarm bells have to be rung."
Bhushan also asked the court to look at the question-answer session the Parliament where the Finance Ministry in response to the opposition said that Sebi was probing certain Adani companies with regards to the regulator's guidelines.
In this context Sebi said that it was investing the companies under the Minimum Public Shareholding norms and had already approached 11 overseas regulators. The first request by Sebi was made on October 6, 2020.
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