Adani-Hindenburg case: SEBI files status report in SC, awaits details from external agencies in two probes

Market regulator Securities and Exchange Board of India (SEBI) has filed a fresh status report before the Supreme Court apprising it that out of 24 investigations arising out of the Hindenburg report against Adani Group, 22 are final in nature and 2 are interim in nature. 

SEBI submitted that it shall take appropriate action based on the outcome of the investigations in accordance with law in various aspects.

SEBI said it was awaiting details from external agencies in two probes. SEBI said it examined 13 Adani Group dealings for possible violations of related-party transaction rules.

The regulator also said its investigation on some offshore deals covered 12 foreign portfolio investors who were public shareholders of Adani Group companies and that details have been sought from five countries on FPIs.

But since some entities related to these investors are located in tax haven jurisdictions, "establishing the economic interest shareholders of the 12 FPIs remains a challenge", the regulator said, adding that it has sought information from five foreign countries on this issue.

FPIs are a component of the non-promoters/public shareholders' grouping in listed companies. According to SEBI, listed companies have to maintain a minimum public shareholding of at least 25 per cent.

SEBI also said an interim report has been approved by the competent authority with respect to trading in Adani group stocks in pre and post-release of the Hindenburg report.

''Information from external agencies/entities actively pursued and awaited,'' it said adding this interim report was approved by the competent authority on August 24.

The conglomerate's listed companies lost more than $100 billion in market value earlier this year after US-based Hindenburg Research raised several governance concerns. The group has denied wrongdoing.

Following this, the Supreme Court asked SEBI to look into the allegations and submit its findings to a six-member panel formed in March, which included a retired judge and veteran bankers.

The court appointed panel said in May that the regulator had so far drawn a blank in its investigations and its ongoing pursuit of the case is a "journey without a destination" but gave the regulator more time to complete its probe.