Supreme Court on Friday asked market regulator SEBI on what it did to probe volatility in market in the wake of Hindenburg Research's scathing report against Adani Group.
The apex court was hearing PILs seeking investigation into allegations of stock manipulation and accounting fraud against Adani Group.
Securities and Exchange Board of India (SEBI) has to take steps so that these instances of short selling can be avoided in future, said the court. The Supreme Court reserved the pleas pertaining to the Adani-Hindenburg issue for orders.
At the start of the hearing, Solicitor General (SG) Tushar Mehta, who appeared for SEBI, told the Supreme Court that it would not seek an extension to complete a probe into billionaire Gautam Adani’s group.
The market regulator further said that it has identified 24 cases pertaining to conglomerate and has finished investigation on 22 such cases.
SEBI must complete a probe in all 24 cases, and proceed as per law with recommendations of the expert committee, observed Supreme Court.
SEBI told the apex court it would not seek an extension to complete a probe into billionaire Gautam Adani's conglomerate.
On Friday, Supreme Court said SEBI must complete probe in all 24 cases and must proceed as per law with recommendations of expert committee.
"We do not have to consider Hindenburg report as an ipso facto determination of facts. We don't have to stick to the Hinderburg report as it is and don't know the veracity of the report and that is why we had asked SEBI to investigate the matter," said Chief Justice of India DY Chandrachud.
Adani Group stocks had been bludgeoned on the bourses after Hindenburg Research made a litany of allegations, including those about fraudulent transactions and share-price manipulation, against the business conglomerate.
The Adani Group dismissed the charges as lies, saying it complies with all laws and disclosure requirements.