New Delhi: The Securities and Exchange board of India (SEBI) on Monday warned the Supreme Court that any incorrect or premature conclusion of its probe into possible lapses of the regulatory disclosures by billionaire Gautam Adani's group will not serve the interest of justice and it will be legally untenable if asked to shorten the probe.
It denied the petitioners' claim that it was already probing the Adani Group of companies since 2016 and so it should not be allowed six months more to probe the report by the US short-seller Hindenburg Research.
It submitted to the top court that no listed company of the Adani group was among 51 Indian listed companies under probe pertaining to the issuance of the Global Depository Receipts (GDRs).
The market regulator was responding to the top court telling it to extend the time limit for the probe only by maximum three months and not six.
Allegation that SEBI has been investigating Adani since 2016 is factually baseless
"Pursuant to the completion of the investigation, appropriate enforcement actions were taken in the matter. Hence, the allegation that SEBI has been investigating Adani since 2016 is factually baseless. Reliance sought to be placed on the investigations pertaining to GDR is wholly misplaced," SEBI said in a rejoinder affidavit.
It told the court that it sought six months of extension meant "to ensure carriage of justice keeping in mind the interests of investors and the securities market since any incorrect or premature conclusion arrived at without full facts material on record would not serve the ends of justice and hence would be legally untenable.
As regards 12 transactions of the Adani group referred in the Hindenburg report, prima facie they are highly complex and have many sub-transactions across the numerous jurisdictions and their rigorous investigation would require collation of data/information from various sources, including bank statements from multiple domestic as well as international banks, financial statements of onshore and offshore entities involved in the transactions and contracts and agreements, if any, entered between the entities along with other supporting documents.
On March 2, the top court had directed the capital market regulator SEBI to probe any violations of the securities law by the Adani group in the wake of the Hindenburg report, which led to massive wipeout of more than USD140 billion of the group's market value.
SC sets up expert committee
The same day, the top court had also set up an expert committee of six members headed by its former judge Justice A M Sapre. The January 24 Hindenburg report had alleged market stock manipulation and fraud by the Adani conglomerate.
The Adani Group has attacked Hindenburg as an "unethical short seller," stating that the report by the New York-based entity was "nothing but a lie," pointing out that the short-sellers in the security market book gains from the subsequent drop in the prices of the shares.
