Initially, Sebi was asked to submit its investigation report by August 14. However, the capital markets regulator requested a 15-day extension. 
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Initially, Sebi was asked to submit its investigation report by August 14. However, the capital markets regulator requested a 15-day extension. The Supreme Court of India is scheduled to take up the fresh status report filed by capital markets watchdog Securities and Exchange Board of India (Sebi) on October 13.
On August 25, Sebi submitted its status report on the investigation into the allegations made by short-seller Hindenburg Research in its January report against the ports-to-energy conglomerate. Hindenburg in January had accused the Ahmedabad-based conglomerate of “brazen stock manipulation and accounting fraud”, allegations that the Adani group has denied, calling the report “a calculated attack on India”.
Initially, Sebi was asked to submit its investigation report by August 14. However, the capital markets regulator requested a 15-day extension and submitted its status report on August 25. The content of the Sebi report has not been made public so far.
However various reports said that Sebi's document would shed light on the progress of the extensive probe, which encompasses a total of 24 investigations related to various aspects of the Adani conglomerate's activities.
"Of these 24 investigations, a substantial 22 have already reached their conclusion, resulting in the issuance of final investigation reports. Additionally, one interim investigation report has been prepared as part of the ongoing scrutiny of Adani Group's operations," V S Sundaresan, Executive Director, Sebi, had said.
Sebi informed the apex court that it was still awaiting information from five tax havens on actual owners behind foreign investors investing in the conglomerate, PTI reported.
The course of action regarding the interim report remains contingent on receiving vital information from overseas regulators. Sebi has said that it will finalise its actions once this crucial overseas data becomes available.
During the initial phase of the investigation by Sebi, the focus was on 13 international entities associated with Adani's enterprises. Additionally, inquiries have been made to five nations concerning Foreign Portfolio Investors (FPIs).
Earlier this week, a petitioner in the Adani-Hindenburg matter alleged in the SC that the markets regulator "suppressed important facts from the top court" and slept over the Directorate of Revenue Intelligence (DRI)'s letter on alleged stock manipulation by the Adani firms.
In January 2014, DRI sent a letter to the then Sebi chairperson, UK Sinha, alerting him that there may be stock market manipulation by the Adani group of companies, said Jaiswal’s affidavit, adding this letter was also accompanied by a CD containing evidence of siphoning of Rs 2,323 crore, news agency PTI had reported.
According to the petitioner, Sinha chose to close the investigation instead of acting on DRI’s inputs. It pointed out that Sinha, who retired as Sebi chairperson in March 2017, is now a non-executive director of NDTV, which was acquired by the Adani Group in 2022.
The affidavit claimed that the letter was accompanied by a CD containing evidence of siphoning off Rs 2,323 crore and two notes on the case being investigated by the DRI. The letter, the affidavit said, also stated that more documents may be obtained from the Mumbai Zonal Unit of the DRI.
"The petitioner herein submits that not only has the Sebi suppressed important facts from this court and slept over DRI alerts, but there is also an apparent conflict of interest in Sebi conducting Adani investigation," the affidavit read.
"Mr. Cyril Shroff, Managing Partner, Cyril Amarchand Mangaldas, has been a member of Sebi's Committee on Corporate Governance, which looks at offences like insider trading," the affidavit said, adding his daughter is married to Gautam Adani's son. This, the affidavit said, shows a clear conflict of interest.
It further said that the Central Bureau of Investigation (CBI) also had to shut its probe in the matter after the Maharashtra government did not grant sanction for prosecution.
Five out of the 24 Sebi investigation reports are on insider trading allegations against the Adani group companies, the petitioner submitted.
The apex court had then asked Sebi to look into the allegations and submit its findings. A separate six-member expert panel was formed in March which included a retired judge and veteran bankers, to go into regulatory aspects of the allegations.
The apex court has seized four PILs on the Adani-Hindenburg matter including those by lawyers M L Sharma and Vishal Tiwari, Congress leader Jaya Thakur and law student Anamika Jaiswal.
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