Adani-Hindenburg case: SC tells Sebi to finish probe, submit report within two months

The Supreme Court (SC) has told the market regulator Securities and Exchange Board of India (Sebi) to finish the probe into the Adani Group-Hindenburg saga within a period of two months. The Supreme Court said that Sebi must investigate if there has been violation and manipulation of stock pricing. The Supreme Court bench led by Chief Justice of India DY Chandrachud also added that Sebi must investigate various other aspects of the case.

The Supreme Court was hearing a bunch of petitions concerning the loss of investor wealth due to the massive downfall in Adani group stocks. The top court said, "The present batch of petitions concern the loss of investor wealth due to decline in share prices of Adani group company. This decline in share prices was precipitated due to the report by the Hindenburg group stating that Adani group had acted against SEBI regulations. The report states that Hindenburg group had taken a short position on Adani group shares."

It also asked the capital markets regulator to submit a report of the ongoing investigation to the Supreme Court appointed expert committee. This committee will be led by Justice AM Sapre and also comprises of Justice KP Devdatt, KV Kamat, Nandan Nilekani, Somasekhar Sundaresan, and OP Bhatt. This report will be submitted to the Supreme Court-appointed panel in a sealed cover.

The Supreme Court also stated that the remit of the committee will be to suggest measures to investigate the Adani mess, strengthen frameworks, and suggest measures to strengthen statutory framework. The apex court further noted, "Constitution of expert committee doesn't divest Sebi from its duty of investigating volatility in the market."

Sebi said it is probing both the Hindenburg report on Adani Group and the allegations levelled in the report such as violation of insider trading norms and foreign portfolio rules.

Meanwhile, Adani Group chairman Gautam Adani tweeted that the Supreme Court order will bring about finality in a time bound manner. Adani wrote, "The Adani Group welcomes the order of the Honorable Supreme Court. It will bring finality in a time bound manner. Truth will prevail."

Also read: Adani-Hindenburg case LIVE updates: Supreme Court asks SEBI to probe if there were violations, submit report within 2 months

Also read: Adani-Hindenburg case: SC tells Sebi to finish probe within two months