As the Adani-Hindenburg affair triggered a political storm, the Securities and Exchange Board of India (SEBI) was urged to probe allegations of stock manipulation. Several questions were raised including the presence of Karan Adani's father-in-law in SEBI's corporate governance committee, as the regulator was given two months to probe the matter.
Now the market regulator has approached the Supreme Court to seek an extension of six months, for its investigation into serious allegations of fraud made by Hindenburg against Adani.
Extension required even after speeding up probe?
As the May 2, 2023 deadline set by the apex court in a March 3 order closes in, SEBI has asked for more time to submit a report with verified findings, in the interest of justice.
It also added that probing misrepresentation of finances and circumvention of regulations in 12 suspicious transactions would normally take 15 months.
But in this case, SEBI is willing to speed up its investigation and submit a report on the matter within six months.
Thorough verification to take time
It cited a process involving reconfirmation of the information received from companies, reconciliation, and the independent verification of documents, to justify the extension.
SEBI will also have to carefully examine financial statements of listed and unlisted firms, minutes of meetings, stock exchange disclosures, offshore entities and bank statements.
Apart from directing SEBI to conduct a thorough probe, the Supreme Court has also appointed a committee of experts to look into the Hindenburg report's allegations.
SEBI itself has also been probing Adani's Rs 20,000 crore FPO, which had been abruptly canceled, but doesn't have names of those who invested in it.