The Congress on Wednesday said that the Supreme Court's judgement on matters relating to transactions by the Adani Group was "extraordinarily generous to SEBI". "It is noteworthy that SEBI has failed to complete its investigation into the violation of securities laws and stock manipulation by the Adani Group and its associates ten months after the Supreme Court’s expert committee asked it to do so," said a statement issued by the party's communications in-charge Jairam Ramesh. "It is unclear what will change in the next three months other than the Model Code of Conduct for the Lok Sabha elections coming into effect," he said.
Earlier today, the apex court delivered its verdict on pleas seeking a probe into the fraud charges levelled by shortseller Hindenburg Research against the Adani Group. The court had already asked the market regulator to probe the allegations. The Sebi has already completed the probe on 22 of 24 charges while an investigation is underway on the rest two allegations.
Today, the SC rejected the petitions, saying this case did not warrant a transfer of investigation from Sebi. It also said that a report by a third-party organisation without any attempt to verify the authenticity of its allegations cannot be regarded as conclusive proof.
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Ramesh said that the SC was right to observe that news reports were not a substitute for a proper SEBI investigation. "However it is concerning that SEBI has asked for extension after extension while the media has produced exposé after exposé," it said.
The Congress leader said that those describing this judgement as a "clean chit" were the same as those who described the Expert Committee report as a "clean chit".
He said the Expert Committee had pointed out that SEBI had in 2018 diluted and subsequently, in 2019, entirely deleted the reporting requirements relating to the ultimate beneficial (i.e. actual) ownership of foreign funds.
"This had tied its hands to the extent that “the securities market regulator suspects wrongdoing, but also finds compliance with various stipulations in attendant regulations...It is this dichotomy that has led to SEBI drawing a blank worldwide," the Expert Committee had stated," the statement said.