Hindenburg report on Adani: SEBI tells Supreme Court has not probed any Adani company since 2016, needs 6 months to submit report
The Securities and Exchange Board of India (SEBI) told the Supreme Court through an affidavit on Monday that it has not been probing any companies of the Adani Group since 2016, as was earlier contended [Vishal Tiwari v. Union of India and ors].
The affidavit filed before a Bench of Chief Justice of India (CJI) DY Chandrachud and Justices PS Narasimha and JB Pardiwala states that allegations that SEBI has been investigating Adani Group companies since 2016 is factually baseless.
The markets regulator sought additional time to investigate the dealings of the conglomerate, reasoning that they were "highly complex".
"The application for extension of time filed by SEBI is meant to ensure carriage of justice keeping in mind the interest of investors and the securities market since any incorrect or premature conclusion of the case arrived at without full facts material on record would not serve the ends of justice and hence would be legally untenable," the affidavit reads.
According to the SEBI, an investigation relating to the twelve transactions referred to in the Hindenburg Report had many sub-transactions across numerous jurisdictions. It adds that a rigorous investigation of these transactions would require the collation of data from various sources along with supporting documents. Following this, an analysis would be conducted before conclusive findings can be arrived at.
SEBI thus sought an extension of six months.
The Court had on Friday expressed its inclination to grant only three more months to SEBI to complete its probe into the controversy surrounding the Hindenburg Research report on the Adani Group of companies and allegations against the conglomerate.
In an order passed on March 2, the Supreme Court had allowed SEBI to continue with its probe. The probe was to be completed by May 2.
This probe is in addition to the investigation ordered by the top court by an expert committee headed by former judge Justice AM Sapre.
The Supreme Court is seized of four petitions concerning the recent report published by short-seller Hindenburg Research alleging fraud on the part of the conglomerate by inflating share prices.
The report had led to a fall in the share value of various Adani companies, reportedly to the tune of $100 billion.
