From nationalism to warnings of legal action, which it hasn't initiated so far, the Adani Group has used different tools to counter the Hindenburg Research report's devastating impact on its market valuation. At the same time, unrelated parties approached the Supreme Court for a probe into Hindenburg's allegations, and that prompted it to demand a report from the Securities and Exchange Board of India.
Although SEBI has only sought a six-month extension to probe the allegations of stock manipulation against Adani, the conglomerate is citing the absence of a conclusion as vindication of its stand.
Seeking conclusion in the absence of conclusions
In a statement released after SEBI's application for an extension on the May 2, 2023 deadline, Adani said that it doesn't show the conclusion of any wrongdoing.
Scrambling to restore investor confidence, Adani added that the application only mentions allegations made in the Hindenburg report.
The application by SEBI isn't a final report on the matter, and the extension is sought because it still hasn't probed the allegations completely.
The market regulator needs six months to collect documents, reconfirm them and verify them, as it goes through financials, corporate announcements, meeting minutes, and bank statements.
What did SEBI really say?
Hence, SEBI's application indicates that it is yet to dig deeper into serious allegations of stock manipulation and accounting fraud.
Over the past few months, questions have also been raised about Karan Adani's father-in-law remaining a member of SEBI's corporate governance committee.
Although the agency initiated a probe into Adani's stalled follow on public offer, the response to an RTI query later revealed that it has no information about who invested in it.
The conclusion about claims of wrongdoing made in the Hindenburg report, will only come to light once SEBI finishes its investigation.